ACCA Strategic Professional · Strategic Business Leader · Machine learning, AI and robotics
Tessaly Insurance plans to replace most claims handlers with an AI system. The board is told the technology works, but staff fear job loss, middle managers resist, and there is no plan for retraining. Pilot results are good. Which approach best addresses the main implementation risk?
The best approach is managing the change through stakeholder engagement, retraining and phased adoption with human oversight. The pilot shows the technology works, so the main risk is staff resistance and readiness, which a rapid rollout would worsen.
- AProceed with full rollout immediately because pilot results prove technical success
- BOutsource the AI system's governance entirely to the software vendor
- CManage the change through stakeholder engagement, retraining and phased adoption with human oversightCorrect
- DDelay all AI use until regulators mandate it
Explanation
The technology is proven; the risk is people and organisational readiness. Engagement, reskilling and phased adoption with oversight address resistance and protect service quality. Immediate rollout ignores the cause of likely failure, and outsourcing governance leaves accountability with the board without control.
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