Countries that are more digitally advanced are likely to include lesser people that trust artificial intelligence (AI) technology.
A new analysis by Swiss Re Institute shows that countries such as Germany, France, the UK, Canada and the US are in the top 20 most prepared for AI out of 120 countries that were involved in a recent study conducted by the firm.
However, despite being prepared, the overall trust in AI technology on the other hand, is comparatively low in these advanced digital economies, with only a third of respondents on average in each country understanding and trusting AI.
It appears that the most AI-trusting people hail from emerging digital growth markets such as India, Nigeria, Mexico, Indonesia, Philippines and Argentina.
Elsewhere, according to Swiss Re Institute, digital trust is influenced by a variety of psychological factors. These factors include cultural and generational attitudes, trust in institutions, incidence of online fraud, ease of use and understanding of technology such as AI.
Additionally, the firm also states that technology such as sensors and AI/automated decision-making is closing the gap between the real and online worlds.
For re/insurers, digital trust is a very important factor and driver for business since access to data is the key component behind risk analytics and automation capabilities.
Pravina Ladva, Group Chief Digital & Technology Officer of Swiss Re, said: “As the insurance industry increasingly improves its value chain with advanced analytics and different forms of AI, creating digital trust is essential. What is surprising in ‘Decoding Digital Trust: A consumer perspective’ is that countries with advanced levels of digital infrastructure have relatively little trust in AI.
“This really underlines how important it is to be transparent with customers, truly understand their needs and deliver on them. The safety, security and efficiency of online engagements is paramount, especially in the insurance industry where customer relationships are built on trust.”
Rob Burr, CEO of iptiQ, Swiss Re’s digital B2B2C insurer, added: “To foster digital trust in insurance, much can be done in establishing transparency and effectively engaging with customers at every relevant touch point. The findings of this report are a call for insurers to think about their customers’ gut feelings and how they can work with them to establish digital trust. The key is to leverage innovative technologies that offer seamless customer experiences and make every aspect of insurance as good as humanly possible.”
