Hiscox CIO Shares Insights on Microsoft Copilot and AI Strategy

When Chris Loake joined Hiscox in November 2023 as the company’s group information officer, the insurance firm had already begun piloting the use of artificial intelligence (AI) in Microsoft Copilot (M365 Copilot). “We’ve been a big Microsoft partner for a while,” Loake says. “When the ChatGPT revolution began, there was a view that this was something we should explore.”

At the time, the company was uncertain about what generative AI (GenAI) would achieve. Nevertheless, Hiscox decided to roll out a few licenses of M365 Copilot across various business departments. “We had a process where people could apply for them,” Loake explains, which helped achieve more buy-in from users who believed the tool would be useful.

How AI Changes IT Strategies

When asked about the impact of AI on the CIO role, Loake draws an analogy with the late 1990s, when the web and ecommerce dominated boardroom discussions. “AI is like the internet was back then,” he says. “Everyone needs an AI strategy.”

While many internet strategies were not effective, Loake emphasizes that a well-articulated AI strategy is essential. “AI is a generational technology that will underpin many aspects of business,” he notes. For Hiscox, this means having a multi-provider environment that offers access to different tools, models, and capabilities. “We can blend these together as the different parts of the organization advance,” Loake adds.

One challenge with off-the-shelf AI systems is their commoditization, making it difficult to argue for a business differentiator. Loake compares this to email, a tool used by every business. “Just like email, AI can be a differentiator if used strategically,” he says. For Hiscox, the claims process is a critical moment in the customer journey, and AI can enhance this experience.

Takeaways from the Pilot

From the 300-user, six-month pilot, distinct user traits emerged. Some users were problem solvers who tried M365 Copilot to address specific issues. “We saw that people who used it regularly got more value,” Loake notes.

Curious users who were interested in new ways of working also emerged. These individuals self-organized as AI champions and set up a Microsoft Teams channel for discussions. “The iterative process of trying the AI on different problems and regular usage drove up the value they got from M365 Copilot,” Loake explains.

The pilot showed that M365 Copilot was particularly useful for tasks that required starting from scratch or consolidating large amounts of information. It also proved valuable for meeting summaries and action points. However, some users found it less useful for roles that did not involve frequent meetings or information analysis.

An assessment of the pilot revealed that some users saved significant time. “15% of participants saved an hour per day, while others saw savings of 30 minutes, 10 to 15 minutes, or a few minutes,” Loake says. This led to a wider roll-out of 1,000 users, with a policy requiring users to apply for licenses to ensure actual usage.

A More Focused Plan

From a CIO strategy perspective, Loake advises IT leaders to make some big bets but not go all in with AI. “Having 1,000 proof-of-concept applications that never make it to production is not the best approach,” he says. Instead, focusing on a few key applications that can be rigorously tested and deployed is more effective. “This allows the business and IT chiefs to stay in the game while AI models evolve,” Loake concludes.

For Loake, having an AI tool available to everyone in the business means people can feel like they are part of the game. “It’s important for users to have consumer-type tools in their hands, and for executives to recognize what’s happening in their business,” he says.