GFT and Databricks Forge AI Data Alliance
In the insurance industry, 80% of firms are either utilising artificial intelligence (AI) or planning to, although many are encountering significant challenges when it comes to the accuracy and bias of these AI systems.
In a bid to resolve these issues, GFT, with its extensive pedigree in digital finance and data solutions, has entered into a strategic partnership with Databricks, the renowned data platform provider known for consolidating and structuring data to buttress AI applications.
GFT's 35-year expertise spans digital finance, enterprise AI, and platform modernisation. With a footprint in 20 global markets and staff strength of 12,000 dedicated to software engineering across the financial services, insurance and manufacturing sectors, GFT has become a beacon for technological advancements in insurance and banking.
Unpacking Data Architecture Complications
Many financial institutions are battling with segmented data systems distributed across various business units, which creates considerable barriers to accessing comprehensive organisational data for AI applications.
Some institutions have tackled this by deploying data lakes – central repositories capable of storing both structured and unstructured data. However, these often lack the necessary structure for effective AI implementation, which is where Databricks steps in with its Data Intelligence Platform.
This platform is specifically designed not just to consolidate organisational data but to create a structured environment primed for AI applications.
GFT complements this by developing the necessary workflows and frameworks enabling companies to feed data into AI models that provide real-time insights, thereby maximising the data's utility.
"It's no longer enough for financial institutions to offer generic, surface-level AI capabilities," stated Andre Gagne, CEO of GFT Canada.
"In order to align with customers' demand for personalised experiences – from hyper-specific claims monitoring, to real-time fraud detection – insurers and banks need AI to be their right-hand-man, instead of a background helper. But doing so first requires accessible, structured data."
Implementing Changes in Canada
GFT, leveraging its 13-year tenure in the Canadian market, has initiated a project with one of Canada's top ten insurers, which offers a diversified portfolio including auto, home, life and commercial insurance, alongside investment products.
By integrating the data from these varied business lines into a Microsoft Azure-based infrastructure, GFT and Databricks have enabled the insurer to implement AI-powered analytics throughout its operations, thus smashing the departmental silos that previously restricted data accessibility.
Their objective is to scale this data integration model across North America, tailoring data architectures to individual industry and business needs, thereby enabling financial institutions to deploy AI solutions in tune with market demands.
Addressing IT Resilience in UK Banking
A recent GFT study highlighted concerns about IT resilience in the UK banking sector. With 17% of customers having experienced IT failures averaging six hours last year, and growing distrust over third-party tech providers, the urgency for robust digital systems is palpable.
This backdrop of uncertainty, compounded by significant disruptions like a CrowdStrike outage affecting millions and a CHAPS payment interruption, is driving a quarter of British consumers to maintain cash reserves.
The upcoming implementation of the European Union's Digital Operational Resilience Act in January 2025 is expected to further shape this landscape, possibly enhancing consumer confidence in the digital operations of banks.
Make sure you check out the latest industry news and insights at InsurTech and be part of the conversation at our global conference series, FinTech LIVE.
Discover all our upcoming events and secure your tickets today.
InsurTech is a BizClik brand
