As insurers and other financial service industries gain a better understanding of how to harness artificial intelligence, generative AI will have an outsized impact across organizations, according to mid-year predictions from Deloitte, which also anticipates driverless cars, synthetic identity fraud and the transition of office space to make waves in the near future. In addition to managing customer relations via AI-powered chatbots, the technology is opening new possibilities in risk assessment that will allow for more accurate policy pricing and coverage that is better suited to the policyholders' risks, according to Gregg Barrett of WaterStreet Company. "The reality is that emerging technological changes could be more pervasive and impactful going forward in ways that can be scarcely imagined today," Jim Eckenrode, managing director of the Deloitte Center for Financial Services, said in a release. Deloitte Services LP. "Financial services will likely play an important role in helping these breakthroughs emerge to the benefit of us all, while simultaneously opening up new avenues of revenue and profit." Deloitte also noted that embedded insurance is coming on strong and auto lines are expected to see the most disruption from this technology. As embedded insurance lives at the point of sale, think auto dealers or manufacturers offering coverage, it has the potential to radically alter insurance distribution models. The above slideshow highlights the other major trends Deloitte expects to shape the financial service sector in 2023 and the years that follow. Related: |

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