S1.E4 - Answer The Phone

In February of this year, Klarna—a leading "buy now, pay later" service with over 85 million customers- announced that their AI assistant handled two-thirds of customer service calls in its first month.?

This monumental shift effectively performed the work of about 700 full-time customer service agents. The news was so profound that call center focused companies like Concentrix Corp. and TTEC Holdings have lost over two billion dollars in market cap since.??

The question I had at the time was: How long would it take to see these innovations applied in the traditionally slow moving insurance and real estate spaces?

Given the industry's reputation for cautious adoption of new technologies, I speculated that similar advancements might take until 2025 to materialize in our field. I was wrong.

Either the insurance and real estate industry has shifted and are now early adopters or the diffusion of innovations, a theory popularized by Everett Rogers in the 1960’s, is moving faster than ever before.?

A Weekend Revelation

Over the weekend, I needed to update one of my insurance policies—something that usually involves navigating a labyrinth of forms, waiting periods, and back-and-forth communications. Prepared for the usual process, I called the insurance company and was immediately greeted by an AI-powered voice agent.??

Curious and a bit skeptical, I decided to engage with this digital assistant. To my surprise, the AI agent seamlessly guided me through the change and quoting process. It asked pertinent questions about my needs, offered options tailored to my situation, and even highlighted potential discounts. Within minutes, I had the change processed which met all my requirements.

But it didn't stop there. The AI assistant then walked me through the binding process, ensuring I understood the terms and conditions. With a few more clicks, the policy was issued and delivered to my inbox. The entire process—from quote to policy issuance—took less than 5 minutes.?

The Insurance Industry's Quantum Leap

This experience was nothing short of revolutionary. The insurance industry, often criticized for its slow pace in adopting new technologies, had not only matched but, in some ways, exceeded the technological capabilities of fintech leaders like Klarna. The integration of AI didn't just streamline the process; it transformed my experience by made it faster, more efficient, and remarkably user-friendly.

So, what does this mean for the future?

Lessons From The AI Frontier:

1. Rapid Adoption Can Happen Anywhere: The assumption that traditional industries like insurance and real estate are slow to adapt is outdated. When the value proposition is clear—improved efficiency, cost savings, enhanced customer experience—adoption can happen rapidly.

2. AI Enhances, Not Replaces, Human Roles: While AI handled the quoting and binding process, there was still an option to speak with a human agent for complex questions. This suggests a hybrid model where AI manages routine tasks, freeing up human experts to focus on more nuanced customer needs.

3. Customer Expectations Are Changing: As AI becomes more prevalent in various industries, customers will begin to expect these efficiencies as the norm. Companies that fail to adapt may find themselves at a competitive disadvantage. No more waiting on hold…

4. Data Security Is Paramount: With AI handling sensitive information, robust data security measures must be in place. Trust remains a crucial factor in customer relationships, especially in industries dealing with personal and financial data.

Frontier Sightings?

Have you encountered innovative uses of AI in real estate, insurance, or other industries that are pushing the boundaries of what's possible? I'm eager to hear your stories and insights. Please reach out to me on LinkedIn to share your experiences.

About the Author & This Series

Eric Narcisco has lived his professional life at the intersection of technology, insurance, and real estate. That intersection was at times volatile, such as during Hurricane Katrina, the Great Recession, and the abrupt end of the ZIRP era. It also saw amazing innovations and prosperity as both the insurance and real estate industries enjoyed advancements, including the use of technology to transform traditional processes, improve customer experience, and increase the economic performance of associated businesses.

Now, a new technological revolution is underway with the advent of artificial intelligence. This series aims to explore real-life applications of this technology and how it's driving innovation and prosperity. If you have an example to share, please contact me.