Businesses in every field are exposed to an unavoidable technological transformation that, if not properly assimilated, could lead to a disastrous loss of competitiveness in the market. Some of the most promising and complex innovations will emanate from Artificial Intelligence.
At MAPFRE’s 29th International Global Risks Seminar, we had the opportunity to address this transformation applied to risk management, where it became clear that Artificial Intelligence is much more than an emerging technology or a passing fad: it is a global paradigm shift. To comprehensively analyze its implementation in business, we spoke with Néstor Guerra, a renowned consultant in technology and corporate innovation.
AI is not a single-purpose tool, even if popular knowledge about it simplifies its applications in the collective imagination. “People right now are calling AI something very specific within this technology, which are the huge language models. These are within the field of natural language processing, which is a discipline that works fundamentally with machine learning machines”, explains the expert. But, apart from these chats based on probabilistic models —which make decisions based on a set of data or previously acquired information—, there is a potential yet to be determined.
Reasoning and solution
Corporate managements that are committed to innovation as a driver of progress and competitiveness are looking at the various opportunities offered by Artificial Intelligence outside of the languages generated. “Technology is capable of reasoning, or simulating human reasoning, and at companies there are many tasks that require this logic. That is where the opportunities arise”, Guerra says.
- Operational efficiency. AI can automate repetitive processes, tackling tasks that optimize a company’s workforce, significantly improving efficiency, reducing costs, and freeing many personnel from unrewarding activities. These tasks would be carried out by generative agents, machines capable of performing actions that are complex and specific to a job position or sector.
- Innovation engines. Language models, capable of receiving the information decided by the user, can identify a customer’s problems or needs through data analysis, and even become an engine of creation —devising possible products or services or building a brainstorming session to serve as a starting point.
- Customer experience. At both B2C and B2B levels, companies can include AI interaction in their internal connectivity mechanisms with providers or customers, and at different stages of the business. Many companies also use it to create advertising campaigns or determine the ideal formula for a strategic product launch.
- Data analysis. Technology can assimilate large amounts of information and be able to find correlations between data to make intentional decisions at superhuman speed. These can include SWOT analysis, prioritization tools, and even decision trees.
- Culture and talent. Companies are interested in how people can adopt these types of technologies, as well as the competencies and skills needed to integrate them into their routine business. This situation creates two trends: workers who use AI individually because it improves their skills, and managers who integrate it into their company philosophy to add value to the firm.
Collective challenges
During the International Seminar, and as Néstor Guerra confirms in this interview, the insurance industry was discussed as a spearhead of technological innovation, as it is “a highly fragmented market, in constant turmoil, and offering services that are in great demand, so it assimilates changes very quickly”.
The challenges faced by insurance companies are shared with other corporations in other fields:
- Regulation. The current regulations are far from clear and regulation is changing alongside the lines of innovation and action that emerge from AI. Guerra assures that, like other technologies, prevention is at the user’s fingertips. “If you want your system to be secure and comply with European regulations, you hire the provider that can guarantee you the necessary requirements to pass any audit. Just as Microsoft allows you to send confidential or encrypted e-mails, AI can include a set of terms and conditions that guarantee confidentiality”, he says.
- Speed. The time it takes to develop adapted applications is currently longer than the time it takes to innovate, so obsolescence is almost immediate in specialization. “This is a huge handicap, because the technological scenario changes very quickly and there are products that have three or four versions a year”.
Effective implementation
Although there is some reluctance to accept the use of artificial intelligence within a company, the truth is that generative agents are not intended to replace, but to complement. AI “does not necessarily imply a decrease in personnel, but rather an advance that promotes providing more and better service with the same personnel”, says Guerra. Moreover, the level of dependence of this technology is remarkable, so it still requires human supervision.
In order for its integration into a company to be effective, the expert recommends three premises in its corporate development:
- Disclosure: Over-information about AI makes for considerable and often unfounded bias. Having experts in the field explain to workers exactly what the technology consists of and how it can help us is an excellent starting point for its development.
- Training: Democratizing its use and involving all possible levels in AI’s capacity for action is a fundamental lever for integration into any company or institution.
- Gradual implementation. It is advisable to start establishing specific objectives, in small projects –in terms of time and coverage– that are easy to assimilate and short in duration, in order to strengthen the skills of personnel and improve their confidence in technology.
Even if the world does not change in broad terms, as predicted in science fiction movies, the most basic devices —from a printer to a cell phone— will be unrecognizable in a decade. Néstor Guerra reminds us that this transformation is unstoppable. “Change is going to happen, so the key is how we will adapt to it”, he concludes.
Contributors to this article:
Néstor Guerra, a renowned technology and corporate innovation consultant and speaker, has positioned himself as one of the leaders in the field of innovation and Artificial Intelligence in the business world.
With a solid track record in the design and implementation of innovation programs for multinational companies such as Repsol, Claro, Novartis, Roche, Deloitte, Línea Directa, Endesa, Banco del Pacífico, and Telefónica, both in Spain and in Latin American countries, Néstor has demonstrated his ability to drive the adoption of disruptive technologies and agile methodologies such as Design Thinking, Lean Startup, and Scrum.
