Allstate: BCG Partner Harnesses Gen AI to Transform CX
Throughout the insurance industry, generative AI (Gen AI) has rapidly become an essential tool when it comes to improving customer experience (CX).
With consumers today expecting higher rates of self-service and digital engagement, AI tools are helping insurance organisations drive increased personalisation and empowering human agents.
Allstate is one of the largest property and liability insurance companies in the US and a Forbes 100 company. Together with its partner Boston Consulting Group (BCG), Allstate is leveraging Gen AI to improve CX, aiming to gain a better understanding of key customer touch points using the power of ChatGPT
In partnership with the data scientists and engineers and BCG X, the technology build and design division of BCG, both companies are utilising their experience in Gen AI to build a predictive model that proactively identifies customer needs.
Harnessing AI to deliver best-in-class customer service
AI and machine learning technologies hold great potential to revolutionise customer service within the insurance sector.
In an exclusive interview with InsurTech Magazine, Julian Hucks, Founder and Managing Director at Starpeak, explained the technology “can be instrumental for businesses as they look to navigate a challenging economic climate.
“We have seen AI-driven chatbots and automated telephone systems capable of handling routine inquiries, policy-related questions, and claims processing efficiently, reducing the need for human intervention.”
BCG and Allstate ultimately aim to leverage AI to increase customer satisfaction across multiple business areas - citing issue resolution as a particular area. Allstate wished to leverage AI to gain greater insights into customers’ nuanced behaviours and better support them.
The model is designed to monitor the presence of indicative signals, providing timely alerts to the relevant service representatives for them to take direct action. Likewise, it aims to triple the prediction performance of previous models by identifying customer journeys that require additional attention from the companies.
“We want to provide customers with the best possible experience. Using Gen AI, Allstate better understands significant touchpoints on the customer journey so we can resolve issues faster and increase customer satisfaction,” says Eric Huls, Allstate’s Chief Data Officer. “This is our vision for AI, and BCG’s great work helped get us there.”
Collaboration integral to a successful AI customer service model
If harnessed responsibly, Gen AI holds the potential to revolutionise key job sectors like insurance. This includes freeing up human employees to focus on more complex tasks, boost customer’s time with employees and enabling businesses to achieve digital goals faster.
The new model developed by BCG and Allstate has been tested by both companies and proven to enable faster identification of customer needs. It allows Allstate to change the course of their customer experience and boost its customer experience capabilities.
The predictive model incorporates existing customer data, as well as new data extracted by Gen AI tools. Then, the machine learning model is able to build on this data to improve performance continuously.
In addition to its improved performance, the model is able to provide customer service representatives more time to resolve potential issues that arise much faster.
“It’s all about ensuring the customer journey is positive with the best tools possible,” BCG said in its announcement.
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