AI-powered tools aren't the thing of science fiction films anymore; they're a crucial integration in everyday business processes. There's no ignoring that AI may soon become a core component of insurance business growth, and neglecting to implement AI technology is neglecting a key player in your brokerage's success.

Insurance chatbots are and have been a common addition to many insurance brokerage websites. While these have been pivotal in the transition to stronger AI tools, they pale compared to other developments. We'll get more into that a little later.

Stay on top of the shift by arming yourself with knowledge. Let's begin with terminology.

As AI technology evolves and develops, new terminology emerges. While your brokerage or agency doesn't need to have every new gadget under the sun, being aware of the different terms and how they relate to insurance processes is key in understanding which AI tools to implement and which to not.

Here are 10 of the most essential AI terms:

"AI Agent" refers to an AI tool that is created to assist both customers and prospects with the likeness and knowledge of real (human!) insurance professionals. This can manifest in many different forms, such as insurance chatbots, interactive quoting forums, communication platforms, or otherwise.

An "Insurance virtual assistant" is similar in function to an AI agent. Insurance virtual assistant is just another fancy way of referring to conversational AI software.

However, unlike an insurance chatbot, an insurance virtual assistant adapts and learns from its interactions with consumers, offering more comprehensive responses and providing solutions rather than scripted responses. An insurance virtual assistant is an insurance chatbot with infinitely more extensive capabilities.

Insurance chatbots have been the initial exposure to AI for many different brokerages and agencies. However, an insurance chatbot and an insurance virtual assistant are not one and the same.

While an insurance chatbot may certainly have its perks, its inherent purpose is to man websites to tackle basic, pre-programmed queries and provide scripted responses. It does not adapt to real-time conversations or stimulate contextualized interactions, but it can be good to offset some of the phone calls for basic issues and topics.

The term conversational AI refers to software allowing machines to not only understand and process, but respond to human language in a way that is natural. Conversational AI can be used to power insurance virtual assistants (like Koios's Olivo – more about that later) as well as voice recognition systems that can handle meaningful conversations.

NLP is short for Natural Language Processing, which is a brand of AI centred on computers' ability to understand and interpret human language in a useful and meaningful way. NLP is helping bridge the gap between human communication and machine understanding by analyzing and processing natural language.

ML is short for Machine Learning, a subset of AI that programs computers to learn and make predictions or decisions without explicit scripting. Rather than adhering to strict code, ML uses statistical models and algorithms to analyze and learn patterns from data, thereby improving your AI tools' performance with time and experience.

ML is short for Machine Learning, a subset of AI that programs computers to learn and make predictions or decisions without explicit scripting. Rather than adhering to strict code, ML uses statistical models and algorithms to analyze and learn patterns from data, thereby improving your AI tools' performance with time and experience.

An "AI stack" is the layered presentation of different technologies and AI tools that work as partners to both develop and deploy systems.

An AI stack can combine multiple components such as data collection, ML frameworks, deployment platforms, model training, and user interfaces. For insurance professionals, an AI stack may involve conversational AI for customer-facing virtual assistants, ML for reviewing interactions and decision-making, and more.

Is an advanced machine learning model trained on vast amounts of text data to understand and generate human-like text. This type of model is designed to process and produce natural language by leveraging deep learning techniques, particularly transformers—a type of neural network architecture.

The insurance industry is wrought with high expectations. As the impact of rising costs, climate change, and increasing litigation pressures clients to find insurance faster, brokerages and agencies are expected to respond. All those calls and inquiries can quickly overwhelm your business, and the solution lies in AI.

Insurance Virtual Assistants, like Olivo, can automate insurance tasks to help boost your business's efficiency and enable your team to manage more leads per head. Even as the pressure for low-cost, comprehensive coverage drives the demand for quick answers even higher, you can easily respond and transform those quick clicks into binding customers.

Olivo is Koïos Intelligence's cloud platform powered by domain-specialized Large Language Models (LLMs), designed to revolutionize the insurance value chain.

Olivo helps to tackle many insurance processes, including quotation. Given the quality of the customer experience provided by this flexible insurance virtual assistant, about 55% of insurance customers using Olivo provide all information required to obtain a quote, compared to 15-30% that do so when using corresponding web forms.

Beyond that, only 4-5% of clients request to be transferred to a broker or call center.

Efficiency is the name of the game. Developed with the performance efficiency of underwriters, agents, and brokers in mind, Olivo offers conversational AI and AI tools to businesses that adapt to the evolving needs of the industry market.