Michael Combs is the President and Chief Executive Officer for CorVel. He has been with CorVel for 30 years — he joined the company as a software engineer in 1991 and rose through the ranks as Vice President of Information Systems, deputy chief and Chief Information Officer, and President in 2017 before assuming the additional role of CEO in 2019. Prior to joining CorVel, Michael was a software engineer with Science Applications International Corp., where he developed software for the Naval Oceans System Center. Michael holds a bachelor’s degree in computer science from San Diego State University

2024 was a year of steady growth for the risk management profession, largely attributed to the implementation of generative AI (GenAI). This technology, amongst others, continues to progress through the innovation cycle as demand increases and organizations look for ways to cut costs and improve overall operational efficiency. With the success that GenAI has brought to workers’ compensation, the C-suite is focusing on the technology’s return on investment (ROI).

I expect the buzz and conversations around GenAI will grow in 2025; the following encapsulates a few predictions about its impact on the risk management industry in the coming year.

Prediction 1: Skepticism of GenAI pivots to acceptance in 2025

Earlier this year, the risk management industry’s view on generative AI was somewhat skeptical. It took until the end of 2024 to witness a change in attitudes and opinions on GenAI despite the technology being in the market for the past two years. Now, many who once doubted the technology have shifted their view to cautious optimism. This change in direction has been critical for the industry, as it will foster growth in the adoption and implementation of advanced technologies and solutions in the coming year.

Our industry is ripe for continued digital transformation, and in 2025, GenAI and other advanced technologies will be further leveraged to drive increased innovation. C-suite leaders and executives are calling for solutions that manage risk and administer claims more effectively and efficiently, and GenAI is answering that call.

Prediction 2: Employers will seek out partners who can prove GenAI’s ROI in 2025

Defining and assessing the value of investments in emerging and advanced technologies is one of the biggest challenges facing executives today. We are witnessing a market saturated with vendors who offer solutions that promise to help reduce risk, improve operational efficiency, and cut costs.

But how can leaders be sure of these promises? As technology advances, the ability to demonstrate a measurable impact on the organization’s bottom line will separate the winners from the others.

This measurable impact will become of utmost importance in 2025, meaning organizations will judge GenAI’s ability to deliver on financial promises while still driving continuous innovation. GenAI will need to enhance its capacities, and I believe that it will be an invaluable currency in today’s business landscape as employer-partner relationships deepen and vendors are viewed as extensions of an organization rather than just service providers.

Prediction 3: GenAI will be viewed and used similarly to utilities

The sheer volume of AI solutions available today is astounding but unsustainable. While companies of all sizes are putting time and money into developing native solutions, large companies are investing significantly in LLMs (large language models), refining them into versatile tools that can meet various needs.

As organizations continue to cut through the clutter in the coming year, expect a few prominent LLMs to surface. This shift will lead organizations to view AI and machine learning as essential utilities.

Like electricity, not every organization needs to build its own power plant, or in this case, an LLM, to operate efficiently and successfully. However, they need access to LLMs to fine-tune and consume. Under the utility model, success will depend on the quality of the fuel (the data used for fine-tuning) and how organizations combine technologies to enhance their value proposition.

In conclusion, 2025 will be a pivotal year for the risk management industry, as GenAI continues to drive innovation and reshape how organizations approach risk, efficiency, and ROI. As the technology matures, its widespread adoption and impact will only deepen, making it an essential tool for companies navigating the future of risk management. &