Nearly half (46%) of insurance data leaders fear that failing to adopt artificial intelligence (AI) will leave them at a competitive disadvantage, according to a report by Ataccama.
The report revealed that while 74% of organisations have implemented some AI-based solutions, only 27% have integrated them company-wide, despite recognising their benefits.
Key barriers to AI adoption include data privacy and security concerns (47%), high maintenance costs (45%), and steep implementation expenses (36%).
The consequences of not implementing AI are a major concern for 46% of insurance data leaders, with 72% of data strategy decision-makers particularly worried about losing their competitive edge.
Among the expected benefits of AI, 57% of insurance leaders believe it will transform customer services in insurance, while 40% anticipate it will drive product and service innovation, and 30% expect improvements in marketing and sales. These opportunities have made AI exploration a top data management priority for 54% of data strategy leaders.
Trustworthy AI depends on clean, high-quality data, which is why 68% of data leaders identify improving data quality and accuracy as an immediate priority. Additionally, managing large data volumes (29%) remains one of the biggest challenges for insurance CDOs today.
Mike McKee, CEO of Ataccama, said, “In today’s AI-powered world, having trustworthy data will enable organisations to use AI tools to accelerate outcomes like operational efficiency, customer service innovation, and competitive differentiation, and transform external forces like regulatory compliance into strategic advantages. For this reason, data trust is not just the foundation of successful AI implementation – it’s the engine that supports thriving, future-ready businesses. Improving data quality and accuracy emerges as a top priority for business and data leaders next year, as organisations capitalise on data quality to ensure better internal reporting, fuel improved decision-making capabilities, and seize competitive advantage.”
Data quality is a top management priority for 51% of respondents, rising to 68% among insurance companies. Insurers see improved operational efficiency (68%), increased productivity (74%), and enhanced competitive advantage (51%) as key benefits driving AI adoption.
While most insurance data leaders report strong executive support for AI initiatives, some encounter resistance from COOs, Chief Digital Officers, and Chief Analytics Officers (15% each).
Jay Limburn, Chief Product Officer at Ataccama, said, “With 77% of companies implementing some form of AI reporting successful projects, it’s clear that AI investment promises to deliver results for most organisations. This indicates that those yet to scale AI usage or build robust strategies risk falling behind competitors who are already using AI effectively to drive efficiency, innovation and growth. The variation between sector-specific drivers and anticipated benefits of AI illustrates how organisations are starting to apply it to specific industry use cases such as fraud detection in banking or improved diagnostics in healthcare. Ataccama is in a strong position to help these organisations make decisions faster with trusted data with our Ataccama ONE unified platform.”
