AI: What it will and won’t replace

This month marks 14 years of my writing for and developing content for InsuranceNewsNet. When I started working here, one of the industry’s big news stories was the development and rise of roboadvisors.

Remember roboadvisors? They are an automated asset-allocation system that works something like this:

“Client is 55 years old with moderate risk tolerance. Put 60% in stock ETFs and 40% in bond ETFs.”

At the time roboadvisors became more common, the question was whether they would eventually replace professionals giving investment advice.

Now, we have artificial intelligence tools that serve more like intelligent assistants, working something like this:

“Analyze this client’s retirement plan, summarize their concerns, draft an email, identify coverage gaps, and explain the tax implications.”

Again, the question is whether these AI tools will replace humans in the insurance and financial services space. Rayne Morgan’s featured article in this month’s InsuranceNewsNet answers that question with a resounding “no.”

AI won’t replace networking and relationship-building. The experts interviewed agree that agents hoping AI will magically generate a stream of high-quality prospects are likely to be disappointed. The best leads still come through trusted relationships, referrals and industry networks. AI can support sales efforts, but it is not a substitute for human trust. 

The biggest AI opportunity may be helping customers find you. Instead of using AI to chase prospects, agents may get better results by improving their online presence so AI-powered search tools such as ChatGPT, Claude and Gemini can direct consumers to them. 

But agents can’t skip the fundamentals when employing AI tools. Agents often jump straight to AI tools without first creating a clear sales plan, defining their ideal customer or establishing strong messaging. AI works best when it enhances a solid business strategy rather than replacing one. 

One thing AI can do is make prospecting more efficient. Instead of simply producing lists of names, AI can enrich prospect data, helping agents spend less time chasing stale leads and more time talking to decision-makers. The goal is not more leads, but better-qualified opportunities. 

Also in this month’s issue, we hear from one of AI’s biggest cheerleaders, Panos Leledakis.

He is the founder and CEO of IFAAcademy, an insurance futurist, an expert in the use of virtual reality, and a member of the NextGen Advisory Task Force at The American College. He is an award-winning inventor of software for insurance needs analysis. 

Leledakis is also an international public speaker with hundreds of hours on stages around the world, giving presentations characterized by his passionate way of expression. 

In this month’s issue, Leledakis challenges the adage “adapt or die” and replaces it with a new one, “adapt and fly,” as he teaches financial professionals how AI can take their practices to new heights.

The human advantage remains irreplaceable. Despite all the excitement around AI, insurance is still a relationship business. Customers may be overwhelmed by information and options, making an advisor’s experience, judgment and personal guidance more valuable than ever. 

Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.