Reducing Costs and Improving Customer Satisfaction in Insurance Using AI

This paper examines the impact of artificial intelligence (AI) and machine learning (ML) on daily work processes in the insurance industry. The insurance industry, which has always been data-driven, has been given a whole new business potential with large amounts of data from various sources being transformed and analyzed using AI and ML. This paper shows how AI and ML technologies can improve efficiency and productivity, increase customer satisfaction and reduce costs at the same time. The paper describes various AI and ML techniques used in claims processing and how customer interaction can be improved using AI tools. Although there are many benefits, especially in the technological sense, the work will also address the challenges we face in practice, such as data accuracy, compliance, local and global regulations in the Bosnian and EU markets. Cybersecurity risks and constant changes to business processes through process automation are constantly present, which is not always accepted by employees. Through the paper we see that the future for AI and ML in business processes is certain and cannot be avoided. A balanced approach that combines AI capabilities with human practice, expertise and knowledge will be essential for the development and application of <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">$A I$</tex> in the insurance industry.