Nationwide Invests $1.5 Billion to Revolutionize Customer Service with AI

Nationwide is making a significant commitment to the future of insurance, announcing a substantial $1.5 billion investment through 2028 aimed at accelerating technological innovation. A key component of this strategy includes allocating $100 million annually over the next three years specifically for advancing artificial intelligence capabilities. This strategic move is designed to enhance customer experiences with more personalized and dependable service, while simultaneously empowering business partners with innovative solutions and efficient support.

Key Takeaways

• Nationwide is investing $1.5 billion in technology and AI through 2028.
• $100 million per year for three years will be dedicated to AI advancements.
• The goal is to deliver more personalized customer service and efficient partner support.
• 90% of employees are expected to use everyday AI platforms by next year.
• Focus areas include employee-AI collaboration, customer problem-solving tools, and operational efficiency.

Enhancing Customer and Employee Experiences

The investment is poised to create more profound and customized experiences for Nationwide’s customers, all while upholding robust data protection standards. The company plans to expand its capabilities across several priority areas. One significant focus is fostering collaboration between employees and AI, with a target of 90% of employees actively utilizing everyday AI platforms within the next year. These integrated tools aim to streamline workflows, allowing employees to concentrate on high-value tasks.

Advancing AI for Problem-Solving and Efficiency

Another critical area involves expanding AI tools designed to assist customers in resolving issues. This includes enhancing customer service tools powered by reliable data. Nationwide has already successfully implemented multiple AI initiatives and is exploring further applications, such as telematics-based driver risk scoring and AI-powered claims summarization.

The third pillar of this strategy centers on refining Nationwide’s operating model to boost productivity, expedite decision-making, and offer round-the-clock customer service. To support this transition, the company is committed to providing comprehensive training, support, and reskilling programs to equip employees for effective collaboration in an AI-driven environment.

A History of Technological Investment and Risk Management

This latest investment builds upon Nationwide’s ongoing commitment to modernization. Since 2015, the company has already invested $5 billion in technology upgrades. Nationwide also highlighted its proactive approach to AI risk management through two dedicated internal teams. The Blue Team focuses on developing and testing AI use cases for customer service and business efficiency, while the Red Team rigorously evaluates compliance and potential risks associated with AI implementation.

"The world is in the next industrial revolution. It’s happening now, and it’s powered by artificial intelligence that is transforming how all of us work," stated Kirt Walker, CEO of Nationwide. "Our modern mutual structure, which combines the long-term vision of a mutual and the agility of a public company, allows Nationwide to capitalize on this revolution."

Jim Fowler, Chief Technology Officer at Nationwide, added, "We have been advancing artificial intelligence capabilities for more than 15 years, and we believe that AI should be people-connected and machine-enabled. This investment will help Nationwide deliver on its promise to harness AI thoughtfully and boldly, empowering employees to use AI productively and responsibly."

Sources

• Nationwide Announces $1.5 Billion Technology And AI Investment, Pulse 2.0.

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