It has been over two years since the launch of OpenAI’s ChatGPT, and the impact of Generative Artificial Intelligence (GenAI) has been transformative. This technology, capable of generating content in various formats like text, code, voice, images, and videos, is reshaping multiple industries, including highly regulated industries such as insurance and banking. GenAI is becoming a crucial tool for improved decision-making, boosting efficiency and accuracy, driving better business outcomes, and enabling workers to focus less on routine tasks and more on strategic initiatives.
At the same time, financial services industry firms face many hurdles, such as the retirement of experienced workers, the emergence of new competitors, and rising consumer expectations for seamless experiences. These challenges are driving the need for new tools, and GenAI-powered copilots are emerging as key solutions to these issues.
What Are Copilots?
One of the most exciting applications of GenAI is the development of copilots— GenAI-powered virtual agents and assistants that work alongside human experts. These copilots can handle a wide array of tasks, from answering questions and automating tasks to summarizing documents, analyzing data, providing insights, and writing code. The enthusiasm around copilots is fueled by the substantial decision-making support they can provide, leading to productivity gains that enable organizations to differentiate and grow more effectively. Despite being relatively new technology, copilots are already demonstrating impressive results. A recent Microsoft study found that users were 29% faster when performing basic tasks like searching, writing, and summarizing research with the help of a copilot. In another study, between 60–75% of GitHub Copilot users reported feeling more fulfilled in their jobs and less frustrated when coding.
Impact on the Insurance and Banking Industries
In the insurance and banking sectors, copilots can enable better business outcomes and significantly boost the productivity and job satisfaction of workers across various roles, including actuaries, data scientists, product managers, and IT professionals. By automating repetitive tasks and offering real-time guidance, copilots help these professionals contribute more effectively and deliver greater value. This can lead to better onboarding and skill development for new employees, as well as increased job satisfaction and retention.
For example, when embedded in systems such as pricing/rating and underwriting platforms, copilots can provide detailed, step-by-step guidance on using vendor software, such as building a pricing simulation. This ensures that new employees are up to speed quickly and efficiently, reducing the learning curve and improving overall productivity. Additionally, given that they are trained on external, web-based data, copilots can offer general guidance on industry best practices, helping workers stay informed and aligned with the latest trends and standards.
Another significant advantage of copilots is their capability in code generation. Copilots can write Python code to create demand models, which are essential for understanding market dynamics and improving pricing strategies. This not only saves time but also ensures that the models are built with more precision and accuracy. Furthermore, through Python code generation, copilots can automate the process of importing data into existing models on a recurring schedule, reducing the time and effort required for data management and ensuring that models, whether utilized for pricing and/or risk selection, are always current.
Copilots in the Future
GenAI copilots are poised to transform teams’ decision-making, by enhancing productivity and fostering innovation in product development that can enable a competitive advantage. They will provide invaluable guidance in training new workers, automating repetitive tasks, and over time will become more autonomous where appropriate. As copilots become more widely adopted, they will contribute to job satisfaction and retention of workers. The future of financial services is promising, and copilots are at the forefront of this exciting transformation.