As the world becomes increasingly digital, the insurance industry is turning to artificial intelligence (AI) to stay ahead of the curve. McKinsey & Co. reports that 40% of their client projects involve AI, with the number of AI-related customers approaching 500 in the past year alone. With the potential to upend traditional industries like banking and insurance, AI is poised to make workers more productive and add $170 billion to the industry’s coffers by 2028, according to Citigroup Inc.

If you’re an insurance executive looking to incorporate AI into your business, here are five steps to get started:

1. Identify areas where AI can add value The first step is to identify areas where AI can add value to your business. This could include automating claims processing, detecting fraud, or improving customer service. Look for areas where AI can help you save time, reduce costs, and improve accuracy.

2. Choose the right AI solution Once you’ve identified areas where AI can add value, it’s time to choose the right AI solution. There are many different AI solutions available, from chatbots to machine learning algorithms. Choose a solution that fits your business needs and budget.

3. Train your staff To incorporate AI into your business, you’ll need to train your staff. This includes teaching them how to use the AI solution and incorporating it into their day-to-day work. McKinsey & Co. estimates that everyone in their organization will need to know how to use AI to remain relevant to their clients.

4. Monitor and evaluate As you incorporate AI into your business, it’s important to monitor and evaluate its effectiveness. This includes tracking key performance indicators (KPIs) and making adjustments as needed. McKinsey & Co. is still evaluating how the use of AI will impact their own headcount over the longer run.

5. Consider parametric insurance Finally, consider incorporating parametric insurance into your business. Parametric insurance uses real-time data and dynamic risk modeling to enable insurers to build and operate insurance at scale. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modeling, Riskwolf enables insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast.

Incorporating AI into your insurance business can help you stay ahead of the curve and improve your bottom line. By following these five steps, you can identify areas where AI can add value, choose the right AI solution, train your staff, monitor and evaluate, and consider parametric insurance. With the right approach, you can harness the power of AI to take your business to the next level.

Read more about how McKinsey & Co. is seeing an increase in the number of clients seeking AI-linked projects here.