How Manulife hit its first ROI on AI investment

Takeaways:

• The insurer uses AI to personalize product offers and distribute product information
• Manulife now provides Microsoft Copilot access to all employees

Manulife set an ambitious goal of $1 billion in value from its AI investments from 2025 through 2027, and it's already achieved about $300 million toward that milestone, said Jodie Wallis, global chief AI officer at the company.

AI generates value by helping the life insurer reach more customers with personalized offers, providing product information to its wholesalers, advisors and agents through a conversational AI interface, by detecting and preventing fraud, by reducing run-rate expenses and by finding cost efficiencies, Wallis said. 

To improve cost effectiveness, Manulife looks at how to "reduce the total cost of software development, because much of the code and many of the testing activities can be done with a lot of assistance from AI," she said. Manulife does not disclose how much it is spending on AI technology.

Manulife is routing all AI-based activities through a basic version of Microsoft Copilot for its 38,000 employees, according to Wallis. Employees can access ChatGPT capabilities through ChatMFC, a proprietary in-house generative AI assistant. Manulife has established an "AI Community of Practice" comprising about 5,000 employees who volunteer to share their experiences using AI, including operational "tips and tricks" they have found, Wallis said. The company also recently gave its top executives comprehensive training in AI.

"It's an ongoing journey to meet people where they are, to train people on the latest technology," she said. "It wasn't enough to train everybody one time in 2023. We have to keep doing it and keep offering new and more programs, and I really believe that's a key to success."

In January, Manulife announced the first fruits of its AI efforts. Its John Hancock Life Insurance division launched Quick Quote, a Gen AI-powered underwriting support tool. Manulife Canada launched MAUDE (Manulife Automated Underwriting Decision Engine), a proprietary AI underwriting engine.

These AI implementations started with embedding AI into all Manulife business functions, all the way from setting systems requirements, through to reviewing the results, Wallis said. Next, using AI to be able to scale operational functions and governance with AI. Lastly, educating Manulife leaders at every level about AI, and how to work with AI in their teams' operations. 

Eventually, Manulife may be able to use AI to advise customers, according to Wallis. "We revisit our strategy every quarter to make sure we're on the right track," she added.