How AI is Reshaping Israel's Financial and Insurance Sectors
Financial and insurance sectors in Israel are rapidly adopting artificial intelligence to boost customer experience and automation, according to industry experts at a recent Calcalist panel.
Artificial intelligence is transforming how we think, work, and make decisions on a daily basis. In sectors such as finance and insurance, it is poised to revolutionize customer experience while simultaneously improving profitability and revenues for companies. During a panel held as part of the Calcalist Investment Week with Harel Insurance and Investments, Uri Gruenbaum, CEO and founder of TipRanks, and Ilanit Navon Edseman, head of insurance and fintech at KPMG Israel, discussed the implications of relying on AI in major financial institutions.
The Delicate Balance Between Data and Privacy
In the new world, the boundary blurs between necessary customer data in the financial sector for making an informed business decision and an invasion of privacy. According to Navon Edseman, it is the regulator's role to determine where that line is drawn. She noted that while Europe has enacted consumer protection laws specifically for the AI field, Israel relies on the existing Privacy Protection Law, which she believes is robust enough to protect consumers.
"The risk in the field of AI is substantial, but on the other hand, fintech companies are rising to ensure that insurance companies cannot be hacked. I assume that in the future, when there are AI agents on the customer's side, we will see even more fintech companies safeguarding both us and corporate and government organizations," Navon Edseman stated.
Preserving Competitive Advantage in an AI-Driven Market
With everyone seemingly operating using the same AI methods, the question arises whether the technology will soon lose its competitive advantage. Gruenbaum argued that this is a recurring argument accompanying every technological breakthrough.
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Financial markets consist of roughly 200 million individuals with vastly different traits, risk tolerances, and desires.
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Different people make different decisions based on the same data.
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AI is ushering in a renaissance for brokers and investment houses as global trading volume significantly increases.
Navon Edseman added that Israel is witnessing a surge in independent trading at banks, particularly among younger demographics opening accounts at investment houses, accelerated by AI tools that simplify information analysis.
