Innovating in the Programs business with AI Integration

Artificial intelligence is rapidly reshaping how organizations operate — across industries and within insurance. As Nationwide® explores new avenues for using AI across the Programs space, program administrators play a key role in ensuring that these tools are used responsibly and effectively.

Glenn Caldwell, Underwriting Director, Professional Liability & Specialty at Nationwide, recently shared how AI is influencing the Programs environment — where data integrity and regulatory compliance are foundational to long-term success. “Artificial intelligence and large language models have tremendous power and capability,” Caldwell said. “They can help Nationwide program administrator partners and underwriters increase efficiency, generate ideas and improve decision-making.”

Where Programs businesses are using AI today

AI is already woven into many processes across the Programs ecosystem. With large volumes of structured and unstructured data flowing between Nationwide and program administrators, AI has become especially valuable in areas such as risk evaluation and governance.

“In the Programs space, we are consistently exploring new ways to deploy AI responsibly throughout our business processes,” Caldwell explained. “We deal with large data sets, so AI has been integral in aiding our risk management and compliance practices, especially when we receive unstructured data.”

This means AI is increasingly working behind the scenes. AI isn’t replacing human expertise, but rather elevating it. Caldwell said, “AI has been instrumental in helping us drive better outcomes for Nationwide and our customers while freeing up underwriters to focus on high value tasks.”

What to consider before integrating AI

With new AI tools entering the market constantly, business leaders and managers who want to integrate these tools into their own operations should start with clarity around purpose, strategy and data readiness.

Caldwell noted that Nationwide works directly with program administrators to understand the strategy and business needs behind any AI supported initiative. “It is critical to determine the PA’s data readiness, as the AI is only as good as the data behind it,” he said. 

As a result, Nationwide places strong emphasis on evaluating data sources, improving data accuracy and validating outputs before relying on them. “We make a concerted effort to manage the PA relationship and fill in the gaps where AI might have missed or misinterpreted data,” Caldwell said. “Human oversight of AI output is imperative for achieving the best results.”

Key benefits when AI is used thoughtfully

When implemented thoughtfully, AI can help strengthen several aspects of business operations.

Caldwell noted that “AI can help enhance underwriting discipline, improve portfolio insights and strengthen operational efficiency, particularly in delegated Programs environments.”

AI also supports and helps refine Nationwide’s broader objectives and practices around implementing governance and compliance best practices, and with vetting and onboarding new programs.

“AI is continuously used to help refine these practices and is incorporated in line with Nationwide’s world class underwriting objectives,” he said.

The message is clear: AI can assist in delivering meaningful efficiencies as long as data quality and human oversight remain strong.

Understanding the risks

While AI offers significant benefits, it is not without risks — especially in delegated authority arrangements.

“One of the biggest risks to a Programs business is flawed data,” he said. “Data integrity helps underwriters actively manage the portfolio and allows for more intelligent decision-making at the Programs level.”

Regulatory and contractual requirements also remain central. Programs administrators must ensure that any use of AI aligns with privacy expectations, security protocols and their obligations under Nationwide agreements. Caldwell noted that Nationwide expects program administrators to meet regulatory requirements and act in good faith with respect to AI as part of their partnership.

The speed of AI innovation adds an additional challenge. “It’s happening at a very rapid pace,” he said. Staying informed and adaptable is essential.

How to incorporate AI responsibly

Programs administrators should view AI as a form of “co intelligence”— a tool that enhances capabilities rather than replaces them.

“Upskilling the workforce, regular collaboration with tech partners and strict adherence to compliance are necessary,” he said. “AI can significantly provide efficiencies but must do so in a way that is ethically and morally bound to our mission of protecting people, businesses and futures with extraordinary care.”

Actively learning and experimenting with AI tools often leads to better results over time. “It’s imperative to stay on top of it, use it in your daily life, upskill, be creative and really use it as a form of co intelligence that can help you in magnitudes with what you’re doing.”

Looking ahead