How can you develop operational efficiencies using AI?

Leonard Schokker, Founder, QuipuCFO, gives his thoughts on the cost of utilising Artificial Intelligence (AI) versus the cost of being a laggard.

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Leonard Schokker, Founder, QuipuCFO.

Andrew Putwain: Within the insurance sector, how do you reduce operational costs and improve efficiency without negatively impacting output levels or risk control?

Leonard Schokker: If you look at this issue through the lens of realising cost efficiencies, then it's about how to choose different use cases.

There is a lot of literature about it and a lot of consultancy cases that show what works and what doesn't. Mercer's 2024 research validates this approach - 91% of investment managers are implementing AI, but success comes from systematic domain transformation rather than scattered pilots.

For instance, McKinsey's analysis shows this systematic approach can deliver 25-40% cost base impact when executed comprehensively.

If you look at the output improvements, I'm talking about not just how we can improve output, but also how we can reduce the number of costs or the number of mistakes. It's about quality control.

That then also links to risk control. There's an efficiency gain, which closely ties into cost control.

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