Summary:

In this episode, Lisa Wardlaw interviews Frank Schmid, the Chief Technology Officer of Gen Re about the application of generative AI in the insurance industry. Frank, an economist by training, discusses the concept of generative AI as a general-purpose technology and the importance of understanding how technology diffuses and makes an impact. He emphasizes the need to focus on building foundations and creating options for the future, rather than chasing the latest tools. Frank also highlights the role of workflow redesign and the potential for reinventing business models with the integration of generative AI.

Takeaways:

Generative AI is considered a general-purpose technology that has the potential to transform the insurance industry.

Understanding how technology diffuses and makes an impact is crucial for making informed technology decisions.

Building foundations and creating options for the future is more important than chasing the latest tools.

Workflow redesign and reinventing business models can lead to productivity gains and competitive advantage.

Patience is key, as the full productivity benefits of generative AI may take time to materialize.

Sound Bites:

"Generative AI, economists look at it as general purpose technology."

"Emphasize foundations. Build the foundations. And then things will fall into place."

"Real options valuation is really helpful in making decisions."


Keywords:

generative AI, insurance industry, technology diffusion, workflow redesign, business models, foundations, options, productivity gains