Why insurer Nationwide is investing $1.5 billion through 2028 on AI and other tech initiatives

Core Insights - Nationwide aims to increase the daily use of AI tools among its employees from nearly 50% to 90% by 2026, supported by a $1.5 billion investment in technology innovation through 2028, including $100 million annually for AI advancements over the next three years [1][2][3] Investment and Strategy - The $1.5 billion investment represents a 20% increase from previous annual spending on technology [3] - Since 2015, Nationwide has invested a total of $5 billion in technology modernization [3] - The company is shifting from an experimental approach to a more focused strategy, identifying 18 flagship AI use cases to prioritize across the business [4][5] AI Use Cases - Key AI initiatives include automating 80% of pet claims, with 25% resolved through instant settlement, and reducing review time for farm and agricultural insurance claims by 20% [6] - Nationwide has already scaled six AI initiatives, including a generative AI claims assistant that summarizes complex customer claims [9] Operational Efficiency - AI tools are expected to enhance operational efficiency, with a goal to cut software development cycle time by 50% using AI coding assistants [8] - A tool developed during a hackathon has achieved a 50% reduction in code conversion time for legacy systems [10] Employee Engagement and Future Outlook - Approximately 1,000 employees have increased productivity through AI, and the company plans to host a symposium to discuss technology's role in improving operations [11][12] - Despite concerns about job displacement due to AI, Nationwide's sales have grown by 50% over the last five years, indicating a belief that AI will facilitate business growth rather than hinder it [14]