IAG’s shares (ASX: IAG) closed out up at multi year highs of $8.64, having earlier got as high as $8.69 in the session. The stock has now gained 55.68% on a YTD basis, making it a significant outperformer in the ASX. One driver of performance is coming from the significant strides IAG is making by leveraging generative AI to drive innovation in various sectors of its operations. The company has successfully used this technology to reduce claims review times by 60% and enhance the development of marketing materials.
IAG’s Chief Operating Officer Neil Morgan emphasized an “inclusive innovation” approach, aiming to incorporate AI tools in a way that benefits the entire organisation. The ubiquity of AI coinciding with the completion of IAG’s retail platform transformation presents a unique opportunity for the company to further enhance its operations.
The implementation of generative AI at IAG is categorised into three main areas: deploy, shape, and compose. Each of these areas involves organized investments to maximize the effectiveness of AI integration. IAG collaborates with partners such as Microsoft, New Relic, GitHub, NICE CXone, and Appian to embed AI capabilities within its enterprise platforms.
To address specific business needs, IAG has developed a custom GenAI bot-builder named ‘Geni.’ This tool is tailored for IAG-specific use cases, enabling rapid and cost-effective solutions to business challenges. Furthermore, the company has trained 150 ‘activators’ whose role is to assist employees in building AI solutions by choosing appropriate backend models and ensuring responsible AI usage.
IAG currently has over 100 AI use cases in various stages of experimentation, trial, or production. Notable among these is a claims concierge system, which already has 500 active users. This system enhances operational efficiency, improves customer experience in claims processing, and supports the decommissioning of older systems.
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The transformation work at IAG is extensive, involving the decommissioning of 289 old systems, with more on the roadmap. Additionally, IAG’s retail businesses are being unified onto a single technology stack, ensuring consistent and efficient feature deployment across the board.
IAG’s commitment to generative AI is a testament to its forward-thinking approach in harnessing technology for operational efficiency and customer satisfaction. This inclusive innovation strategy not only supports current operational goals but also lays a robust foundation for future growth.
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