Pravina Ladva, Swiss Re’s chief digital and technology officer, said artificial intelligence’s impact on productivity will “ultimately prevail”, ushering in an era that will produce its own leaders, with those who deploy the technology effectively reaping increasing benefits over time.
In a new Risk Perspective blog post, Ladva noted that investment in artificial intelligence and its supporting infrastructure is surging, prompting comparisons to the early days of the internet.
“One wonders whether the AI boom is also on a knife’s edge: Will the adoption and monetization of this technology spread smoothly, or will it implode?” Radwa observed.
She continued, “The legacy of the Internet remains strong. It redefined how people interact and created the infrastructure, business models, and risk-taking mindset that define our century. Without it, digital commerce, cloud platforms, and the connected world as we know it will cease to exist.”
Radwa said today’s dominant AI companies are fundamentally different from internet start-ups, with investments in AI driven by established companies with huge profits and strong cash flows. Still, there are varying views on the sustainability of AI spending.
“So, what will it be: an AI revolution or an illusion? The answer is unfolding, but I believe that the substance of AI’s productivity gains will eventually prevail, just as the winners of the Internet era transcended the hype of the late 1990s,” Ladva explains.
She continued, “The real story, then and now, is laying the groundwork for long-term impact. After all, behind every failed pets.com or boo.com there was an Amazon, Google, or Alibaba that showed real staying power. Even Netscape’s innovations endure, including the web scripting language that makes our digital lives possible.”
“Although some irrational exuberance is inevitable, artificial intelligence is likely to follow a similar path. Investments in chips, software, data centers and the energy to run them are laying the foundation for the next technological and economic transformation.
“At Swiss Re, AI is a key pillar in how we drive reinsurance/insurance and create lasting value. As adoption accelerates and use cases scale, we are building the momentum we need to thrive in an AI-driven future.
“Among the milestones, ClaimsGenAI helps our Enterprise Solutions claims handlers identify recovery opportunities and fraud, while Underwriting Ease simplifies underwriting of complex applications for Life & Health Reinsurance clients. We have other AI initiatives with similar promise.”
Radwa concluded: “Not coincidentally, the guiding principles followed by the winners of internet companies are not that different from what I have described. Companies that align technology with real business and consumer needs while earning the trust of customers, investors and regulators are still going strong.
“They understand that data is fundamental and that true success requires going beyond experimentation. After all, the big winners didn’t stop at selling books; they reinvented global logistics.
“Similarly, the AI era will produce its own leaders, and those who deploy the technology well will reap more and more benefits over time.”