AI Adoption in Insurance Halted by Data Quality Issues: Microsoft Expert
Microsoft's Senior Director of Insurance Industry Advisor Naveen Dhar spoke about the current state of artificial intelligence (AI) in insurance at Insurance Fest 2026. He emphasized that AI is already changing underwriting and claims processing, but its adoption is still limited by data quality issues.
Dhar noted that AI-powered tools can extract relevant information from documents, making the underwriting process more efficient. However, he also stated that human judgment is still required for complex risks, particularly in specialty lines and commercial insurance.
The expert highlighted the challenges of integrating AI into existing legacy systems and siloed data management practices. He argued that the insurance industry needs to improve its data science capabilities and connectivity aspects to fully leverage AI potential.