| Date Issued: | 28/10/2026 | Applicable to: | All firms | |
| Link(s): | Guest blog: Using AI to build and evidence suitable and s… | |||
Context
The ABI has published a guest blog on using AI to build and evidence suitable and sustainable business models (from Tristan Garnons-Williams of IBM Promontory), explains that AI discussions are fast developing globally. For the insurance sector, the debate is not about whether AI will shape the future of businesses, but how to use it now and prepare for the future without weakening the foundations of firms’ business models. AI can assist with improving the efficiency and effectiveness of an increasing number of tasks but alongside the benefits, firms must be confident their use of AI remains commercially viable, operationally resilient, properly governed, and consistent with good customer outcomes.
Key points to note and next actions
- AI adoption is a strategic priority for insurers, not simply a technology project. Inaction and uncontrolled adoption carry risks to competitiveness, service quality and business-model sustainability.
- AI should be assessed at three levels: individual use cases, the enterprise-wide operating model, and wider ecosystems (platforms, data, infrastructure and third parties).
- Boards remain accountable for strategy, governance, resilience and customer outcomes. Protect policyholder trust by aligning AI plans with operational resilience, third-party risk management, data governance and talent.
- Link AI investment to clear objectives, risk appetite and measurable benefits. Evidence effective oversight, including where AI is used, its value, risks, dependencies, controls and required skills. Ensure that AI-driven decisions can be explained, challenged and corrected, particularly in pricing, claims and customer engagement.
- Success means sustainable value and demonstrable control—not simply adopting AI fastest.