AIG's Integration of GenAI: Creating a Digital Twin of Business Operations

AIG CEO Peter Zaffino aims to create a "digital twin" of the company by integrating generative AI. This will involve a digital representation of all key data, processes, business logic, and relationships across businesses and functions. The goal is to enhance decision-making and service to clients. AIG has been building its ontology since starting AI work and has partnered with companies like Palantir, Anthropic, and AWS. The insurer has already seen promising results from its use of GenAI for underwriter assistance in nonprofit business products.

American International Group (AIG) is embarking on a transformative journey by integrating generative artificial intelligence (AI) to create a "digital twin" of the company. The initiative, spearheaded by CEO Peter Zaffino, aims to enhance decision-making, improve service to clients, and streamline operations [1].

Zaffino announced during a conference call that the digital twin will represent all key data, processes, business logic, and relationships across businesses and functions. This digital replica will serve as a foundation for technical reviews and provide claims personnel with valuable insights and tools [1].

The development of this digital twin is built on AIG's ontology, which has been under construction since the company began its AI work. Ontology in AI provides concepts that help AI understand and leverage data to produce operational results [1].

AIG has partnered with leading technology companies to support this endeavor, including Palantir, Anthropic, and Amazon Web Services (AWS). These partnerships will help AIG navigate the complex landscape of decision-centric software architecture and enhance its AI capabilities [1].

Initial applications of generative AI have shown promising results. AIG has already implemented GenAI for underwriter assistance in nonprofit business products, with early results indicating significant improvements in efficiency and accuracy [1]. The insurer plans to expand this use of AI across various lines of business, including commercial insurance in North America by 2026 [1].

In addition to underwriter assistance, AIG is exploring the use of GenAI to support claims processing. Early tests have shown a decrease in processing time from days to hours, enabling claims adjusters to make more informed decisions faster [1].

As AIG continues to advance its digital twin project, it remains committed to delivering value to shareholders. The company reported a strong second quarter with adjusted after-tax income per diluted share reaching $1.81, a 56% increase year-over-year [3]. AIG's general insurance business also saw significant growth, with underwriting income increasing by 46% year-over-year [3].

Looking ahead, AIG is on track to achieve its core operating ROE target of 10% plus in 2025 and aims to reduce its expense ratio below 30% by 2027 [3]. The company's financial strength ratings have been upgraded by both S&P Global and Moody's, further bolstering its financial position [3].

References:
[1] https://www.insurancejournal.com/news/national/2025/08/12/835219.htm
[3] https://seekingalpha.com/news/4481617-aig-signals-500m-annual-cost-savings-and-projects-strong-property-profitability-amid