How AI is reshaping marine insurance

Lars Lange, secretary general, International Union of Marine Insurance, discusses the way in which the latest technology is impacting the marine market, with a warning that insurers need to move with some caution

Artificial intelligence (AI) became widely visible to the public with the launch of ChatGPT in late 2022, showcasing the power of large language models (LLMs). At their core, AI systems are built on statistical models and pattern recognition. Machine learning identifies patterns in large datasets while LLMs create an internal representation of how language and the world work, enabling them to predict responses. These models capture grammar, meaning, relationships, abstractions, concepts and even reasoning structures, which is why their responses can appear intelligent.