Why AI is the Future of Claims Management: Key Features You Can't Overlook

This article is written by Paul Njonga MBA MCIOB

The market is flooded with various AI tools, ranging from specialised software designed for construction claims management to more generic AI platforms that can be tailored to suit your needs.

When choosing an AI tool for construction claims management, consider the following factors:

1. A Strong Hypothesis

Begin with a clear, objective, and quantifiable goal. For example, a good hypothesis could be, "Implementing AI to analyse project documentation will reduce the time spent on claims processing by 30% and improve accuracy in identifying contract discrepancies." A poor hypothesis might be, "Using AI will help us manage claims better," as it lacks specific objectives and measurable outcomes.

2. Functionality

Ensure the tool offers the specific functionalities needed for effective claims management. This should include:

   - Expertly Trained AI Assistants: AI tools equipped with expert-level understanding of construction law and claims management can assist in drafting and reviewing documents, ensuring compliance, and providing recommendations.

   - Knowledge Management: The tool should facilitate the organisation, retrieval, and use of critical project knowledge, helping to manage claims based on precedent and relevant documentation.

   - Customisable Templates: Pre-built, customisable templates for common claim types can streamline the documentation process and ensure consistency across the board.

   - Triaging: The ability to automatically triage and prioritise claims based on complexity, value, or risk can help focus efforts on the most critical cases.

3. Integration

The tool should seamlessly integrate with your existing project management systems and databases, minimising disruptions and ensuring a smooth transition.

4. User-Friendliness

A tool that is easy to use will encourage adoption among your team. Look for intuitive interfaces and comprehensive support resources that will enable your team to quickly adapt to the new system.

5. Scalability

As the volume and complexity of claims grow, your AI tool should be able to scale accordingly. This includes handling larger datasets and providing more sophisticated analysis as needed.

6. Safety

The tool must adhere to strict safety and privacy standards. Features like anonymisation of sensitive data and the use of non-identifiers are crucial to protect client confidentiality and comply with legal and regulatory requirements.

Once you’ve selected an AI tool, the next step is integrating it into your workflow. This involves setting up the technical infrastructure to ensure compatibility with your current software systems and providing sufficient training for your team. Offer ample training sessions and resources to help your team understand how to input data, interpret AI outputs, and make informed decisions based on the AI’s recommendations.