From: Captive International
Artificial intelligence (AI) has long been a topic of discussion in the tech industry, but its recent advancements have propelled it into mainstream business conversations – and that now includes captive insurance.
Some the advances that have been made in AI – and how these might apply to insurance – were the topic of a panel discussion, which took place at the annual CICA conference, taking place this week in Tucson, Arizona.
The panel started by stressing that AI is not a new concept, but it is being used now much more widely than just a year ago.
As Kayvon Deldar, vice president of partnerships at Voxel, noted: “AI is not a new concept… Initial AI models even started in the 70s and 80s.” However, it was the emergence of generative AI, particularly ChatGPT, that significantly amplified public interest. The rapid evolution of AI, with deep-sea models and autonomous agents becoming more prominent, has changed how businesses interact with technology.
Deldar highlighted that AI has been present in everyday applications for years, from Netflix recommendations to voice assistants like Alexa. However, he emphasised that what makes AI exciting today is “the sheer amount of money going into it and the innovations emerging as a result.”
New AI-driven models and tools are constantly being developed, including advancements from China, which is introducing its own AI competitors. Deldar also highlighted the rise of AI agents, which function as “automated task managers” capable of handling complex workflows, such as booking travel or managing insurance claims.
Despite the enthusiasm surrounding AI, Dave Netti, senior vice president and director of risk services at Captive Resources, urged businesses to recognise what AI is not. “The concept that AI is perfect, that it’s error-free – that’s just not true,” he explained. AI operates based on data patterns and models, which means it can produce errors known as “hallucinations”—instances where AI generates incorrect or misleading information.
Netti also stressed that AI is not a replacement for human workers. While it can handle repetitive tasks efficiently, it lacks the ability to interpret emotions, context, and non-verbal cues, which remain essential in many professional roles. “AI is there to help make people more efficient,” he clarified, “but it is by no means going to replace all jobs.”
