73% of UK insurance executives anticipate that Generative AI (GAI) will eventually take their jobs, according to a new study launched by FintechOS.
The firm’s new study, ‘Generative Artificial Intelligence: The Technology Polarising the Financial Services Industry’, unveils a host of varied opinions among UK insurance companies on the expectations, implementation, and impact of this fast-developing technology.
As per FintechOS, approximately 25% of those surveyed described themselves as “frightened”, while 23% admitted to feeling “curious” about GAI.
When asked whether they viewed the technology as friend or foe, 42% opted for “friend”, with 46% stating “foe”. FintechOS observed that 44% of UK insurance organisations are already utilising GAI in their workplace. Additionally, 48% are investing in GAI research, and 39% in its implementation.
The study also found that 66% of insurance executives anticipate an average 20% increase in revenue due to GAI within the next three years, with a fifth putting this figure even higher at 31-40%.
“Amid these often-conflicting views, there is one common consensus: the expectation that GAI will inevitably reshape the workforce and displace jobs,” FintechOS said.
The firm added, “More than half of UK insurers (60%) believe that GAI will result in job losses at their organisations, with an average headcount reduction of 30% over the next three years. The majority (73%) of UK banking executives expect their jobs will eventually be replaced by GAI.”
Commenting on the findings, Teodor Blidarus, co-founder and CEO at FintechOS, said, “GAI is a terrain marked by both excitement and apprehension, and our study explores the polarised sentiment that surrounds this groundbreaking technology.
“While opinions within the insurance industry are deeply divided, there is one common consensus: the expectation that GAI will boost revenues but inevitably reshape the workforce and displace jobs.”
Blidarus added, “Every insurance company has started its GAI journey and it’s imperative to take the first step – even if it’s a small one – to avoid being left behind.
“Only by starting the journey now and understanding the implications can we mitigate the risks of GAI and better reap the rewards.”
FintechOS’ study is based on a survey of senior technology decision-makers within major banks and insurance companies, with more than 1,000 employees, operating in both the United Kingdom and the United States.
The survey was commissioned by FintechOS and was conducted by independent research company Censuswide over three weeks in August 2023.
