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From Chat-Bot to Chat-Hot: How Generative AI Has Evolved

Written by
Amrish Singh
generative AI

Does the thought of dealing with a chatbot fill you with dread? You’re not alone. Although chatbots are a cost-effective way to provide 24/7 insurance services, early versions often proved to be frustrating for customers. Fortunately, Generative AI has paved the way for a new type of chatbot. Here’s how chatbot technology is heating up and why every insurer should be incorporating this technology.

The Problem with Old-School Chatbots

Chatbots were built to deliver faster, 24/7 service. As discussed in our last article, speedy, text-based service capabilities are more important than ever. 

The idea was good, but in some cases, the execution was lacking – primarily because chatbots haven’t always been particularly smart. Old versions answered simple questions but got bogged down by complex inquiries. 

This is frustrating regardless of what you need help with, but it’s especially aggravating when you’re dealing with a serious issue like an insurance claim. To add insult to injury, old-school chatbots were rather monotonal. They lacked the sophistication required to provide empathy. For customers reporting a car accident, fire, or other type of traumatic loss, the wrong tone can start the claims process on a sour note.

Enter Generative AI

New chatbots have many capabilities that weren’t possible before the emergence of generative AI technology. They can provide:

  • Empathetic and intuitive conversation. Generative AI-powered chatbots sound so human that many people are unable to reliably distinguish between human and chatbot messages. This distinction is at the heart of the famous Turing test, which machines pass by being indistinguishable from humans. New Scientist says that a panel of marketing experts were only 57% accurate in identifying ads created by AI versus ads created by marketing students, an experiment described as the ad Turing test. Google’s AI has also passed the Turing test, according to Popular Mechanics.
  • Responses in multiple languages. During times of crisis, language barriers can be a huge issue. In the past, addressing this issue involved finding an interpreter or struggling with a language you didn’t know well. Chatbots remove the language barrier by providing replies and translation in any language. If the user switches languages, the chatbot can switch seamlessly to keep up.

Why Insurers Need This Technology Now

Business leaders in many industries are looking at how they can leverage new generative AI tools. In the insurance industry, pursuing this technology should be an absolute priority. With generative AI, you can:

  • Revolutionize the FNOL process. With this technology, people can provide claims information at anytime and in any language. When they have questions, they can receive responses that sound natural and empathetic. 
  • Provide ongoing assistance with the claims process. After the claim is filed, if claimants have a question or need an update, they can interact with the chatbot to receive an immediate response, any time of the day or night.
  • Enable text-to-speech and speech-to-text capabilities so policyholders can communicate however they want. They can type information and receive written responses or give their information verbally and hear verbal replies. Either way, claims professionals can look at a written transcript and summary later. 
  • Receive a summary of the information. If you have a long FNOL form, generative AI tools can analyze the information and provide a summary of the key points. The same goes for oral information, such as responses from claimants. Using these tools is like having a super-fast, super-reliable assistant, working 24/7.
  • Integrate your forms with your core system. Eliminate the need for data entry and minimize human mistakes. With real-time integration, structured data will flow directly into your core systems.

Ready to see how a next-gen chatbot can enhance your digital FNOL and other policyholder services? Liberate leverages automation to provide the best customer experience at the lowest possible operating costs. Learn more.