How AI Is Changing Insurance Consumer Behavior

November 22, 2024 - With predictive algorithms and personalization tools, artificial intelligence (AI) is more than a buzzword.

This emerging tech is redefining the behaviors and expectations of today’s digital shoppers.

For business owners, staying ahead in the digital marketing space means adapting to these shifts while understanding where the industry is heading.

What AI Platforms Are Leading the Way?

From OpenAI’s ChatGPT and Google’s Gemini and Microsoft’s Co-Pilot, these advanced AI platforms are transforming information search with conversational, context-aware responses. Integrated into everyday apps, search engines and operating systems, ChatGPT and Gemini enhance accessibility, while Microsoft embeds Co-Pilot into its productivity suite.

Of all these platforms, ChatGPT ranks supreme with over 200 million weekly users worldwide. At the forefront of the AI revolution, OpenAI is constantly improving upon and building new language-learning models — most notably its prototype SearchGPT, which includes relevant sources in its conversations.

As this technology continues to grow, we can only expect more integration of other AI programs across different digital mediums.

Can AI Offer Personalized Recommendations?

Today’s consumers want an experience that feels like it was made just for them. This is where AI comes in by analyzing individual profiles, preferences and even purchasing history to recommend products tailored to each customer. For business owners, this means offering a more custom approach and staying competitive by leveraging tools that help you understand your audience on a deeper level.

Has AI Streamlined the Shopping Process?

Understanding complex and nuanced products like insurance can feel like its own language to the average shopper, which is why more consumers have increasingly adopted AI as a tool for understanding policy jargon. Notably, a recent study found that 36 percent of people find AI helpful for breaking down complex insurance information to better guide their purchasing decisions. How certain AI platforms determine which information is reliable can depend on how reliable it’s considered by search engines, especially when it comes to using Gemini — another reason to ensure your business’s web presence is accurate, consistent and engaging.

What Role is Conversational Chat Playing?

Voice assistant-powered AI has allowed today’s consumers to easily inquire about policies, quotes or coverage details for instant answers. Though voice assistants like Alexa, Siri and Google Assistant aren’t fully conversational yet, platforms like ChatGPT and Gemini can offer tips and tailored recommendations. To put things in perspective, a recent study found over 50 percent of mobile users utilize voice search every day. This shift in search behavior means agents must ensure their online presence is optimized for these new AI-powered queries to stay visible.

Fun fact: Melon Local optimizes for voice search as part of our Organic Search Optimization services!

Why Should Businesses Care?

With consumers increasingly using these platforms to discover businesses, it’s crucial for companies to ensure their online presence is optimized for AI-powered search. And if you haven’t explored AI, chances are your competition has. A recent survey found that 72 percent of businesses have adopted AI for at least one business function, and half of survey respondents use it for two or more of their business functions. This involves keeping business listings accurate, creating relevant content and using keywords tailored to conversational queries, as well as constantly engaging with people through your review platforms and social media.

Ready to Leverage the Power of AI with Melon Local?

By starting a fruitful partnership with Melon Local, you’re not only adopting AI-driven solutions but also gaining an edge with a team that blends cutting-edge tech with the human touch clients value.

Ready to see how our One in a Melon approach can elevate your agency with even more fresh, quality leads than ever before? Book a demo today to discover the future of insurance marketing, today!