A recent survey of over 200 technology and data leaders in the insurance industry has revealed that while 90% have allocated budgets for generative AI (GenAI) by 2025, only 10% feel fully prepared to comply with current and upcoming regulations. Approximately 62% of respondents believe they are at least “moderately prepared” for compliance, but concerns about data privacy and ethics remain significant. Furthermore, many insurers are relying on synthetic data to mitigate a “data drought” that hampers the development of accurate AI models. This highlights a gap between investment in GenAI and readiness to address regulatory and ethical challenges.
