Davies' AI chief says the biggest challenges are compliance and customer expectations

It wasn't too long ago that using artificial intelligence (AI) to greatly improve human ability was the stuff of future speculation.

For global companies like Davies, AI is now an integral part of business strategy. The application specialist and professional services provider has recently appointed Paul O'Brien (pictured) as its first AI team chief, a move that reinforces its commitment to use technology to grow.

O'Brien spoke to him Insurance Business about the key AI systems Davies plans to use in all of his international operations.

The biggest challenges AI executives like him face? Compliance and meeting customer expectations.

“A key consideration for us is making sure we fully understand the regulatory responsibilities in the various jurisdictions,” said O'Brien, who also serves as chief technology officer for the organization's global solutions.

“In the UK, AI frameworks are very advanced, but in North America, there are big differences in AI laws across states.”

Beyond meeting regulatory requirements, O'Brien also highlighted the challenge of aligning its enhanced capabilities with customer expectations.

“We have a diverse list of customers, each with a different desire for AI in their application process,” he said. “As AI capabilities advance, it's important to bring our customers along on the journey, tailoring the use of AI to their specific needs.”

Keeping up with exciting new developments in AI

Personally, O'Brien said his biggest challenge is keeping up with the games

rapid change in AI. “When we started discussing AI last year, the capabilities were very different,” he points out. “The rate of change and making sure we stay in touch with it, understanding the pros and cons of the business, is really daunting.”

A key example of this was the emergence of AI-powered video and voice, which may soon become widely available. “Imagine being on a Teams phone from now on and not knowing if it's really me or an AI generated in real time,” O'Brien illustrated.

There are also concerns about the misuse of AI, particularly in areas such as fraud. O'Brien emphasizes the need for businesses to understand both the positive and negative impacts of AI, and implement appropriate safeguards.

As AI continues to evolve, O'Brien is cautious but optimistic about its role in business. Initial fears that AI will replace human jobs have been largely assuaged by the realization that AI is about augmentation rather than replacement, although he noted that the current state of AI shows that it is not yet a “finished product.” Challenges such as missing objects in large language models show that AI still has limitations.

In the meantime, regulatory frameworks are providing the necessary leads to ensure that businesses like Davies are using AI wisely and responsibly.

“While the law can be seen as a potential decrease in innovation, I think that's really good,” O'Brien said.

Davies' AI strategy – what does the organization aim to achieve?

When productivity AI started gaining momentum, especially with the rise of ChatGPT in the public space, it became clear that AI would change the game for Davies.

“We saw a significant impact on our operations and saw the need to reevaluate our AI strategy for the future,” O'Brien said.

As an independent equity-backed business that was quickly acquired, Davies needed to look inward to its AI capabilities, especially given the wide range of industries it operates in, from insurance to consulting to forensic accounting. The first task, according to O'Brien, was simple but important: “What are we doing in AI?”

He soon discovered that various departments at Davies were already working with AI to some extent. “We were doing a lot of automation and AI-type tasks, and they weren't all talking to each other,” O'Brien said.

If they were to grow the power of AI across the organization, Davies needed to unify their efforts under a central strategy. This is how the role of AI team leader came about.

“The role grew out of that need to make sure we have a holistic view of everything that's happening in AI,” O'Brien explained, “and to make sure we're delivering the best results for our clients and ourselves.”

Davies' AI strategy is divided into three pillars: compliance and sustainability, business development, and product development.

The company is exploring several projects to improve its products and services:

1. It continues to develop its Laurie platform, which is part of Davies' claims processing solutions, and is adding more AI capabilities to it.
2. Building AI features into Davies' SaaS platforms
3. Using AI productivity tools like ChatGPT to improve internal productivity and efficiency, such as automating tasks like document analysis and meeting summarization.
4. Developing common AI capabilities such as document ingest and understanding, then applying those across Davies' many products and services to drive efficiency.
5. Exploring the use of video and voice generated by AI, while being aware of the potential risks and impacts this technology can have on business, such as reducing fraud.

Davies' primary goal is to use AI to complement and empower Davies' employees and customers, rather than replace them, and to do so in a safe and compliant manner.

“What excites me most about AI right now is how it's augmenting, rather than replacing, humans,” O'Brien said. “There was a fear that it would close job opportunities. But what we see is AI helping people work more efficiently. For example, in areas where teams deal with large documents or large amounts of data, generative AI is ideal for quickly finding specific information, such as clauses in legal contracts. It streamlines workflow, making tasks easier and more manageable.

“As employees become more familiar with productivity AI tools like ChatGPT in their lives, they expect to use the same tools at work. Giving them access to these skills in a safe and controlled way is great.”

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