How Marsh McLennan is restructuring IT around generative AI

Digital transformation sets the stage for AI innovation: Marsh McLennan’s CIO, Paul Beswick, initiated a comprehensive digital transformation five years ago, laying the groundwork for the company’s current advancements in generative AI and other cutting-edge technologies.

• Beswick’s vision focused on empowering clients to navigate risks in an increasingly digital landscape, recognizing the need for a unified technology approach across the company’s four business units.
• The creation of MMTech, a consolidated technology organization, marked a significant step in aligning IT efforts and establishing a common platform for Marsh McLennan’s digital future.
• This organizational transformation involved developing a core platform with built-in governance and security measures, enabling rapid application development and deployment.

Cloud migration and data unification: Marsh McLennan’s strategic move towards cloud infrastructure and unified data analytics has been crucial in supporting its AI initiatives.

• The company is actively transitioning workloads to multiple cloud providers while phasing out its traditional data centers, enhancing flexibility and scalability.
• A unified data and analytics platform, powered by Databricks, now serves as the foundation for analytics, machine learning, and AI applications across the organization.
• This consolidated approach to data management and analytics has streamlined operations and paved the way for more sophisticated AI implementations.

Generative AI deployment and custom solutions: Marsh McLennan has made significant strides in implementing generative AI tools, demonstrating a commitment to innovation and cost-effective solutions.

• The company launched a generative AI Assistant 18 months ago, now accessible to its 90,000 employees worldwide, showcasing early adoption of this technology.
• In a notable cost-saving move, Marsh McLennan developed its own AI copilot with custom plugins, achieving functionality similar to Microsoft’s offering at approximately 1% of the licensing cost.
• Current applications of generative AI within the company include document drafting, translation, summarization, and client research, indicating a broad range of practical use cases.

Employee empowerment and AI education: Recognizing the importance of workforce readiness in the AI era, Marsh McLennan has invested in employee training and development.

• The creation of an AI Academy underscores the company’s commitment to equipping its workforce with the skills necessary to leverage generative AI tools effectively.
• This initiative not only enhances employee capabilities but also fosters a culture of innovation and technological adaptation across the organization.

Future outlook and potential impact: CIO Paul Beswick envisions generative AI as a transformative force for IT’s role within Marsh McLennan, with significant implications for the company’s future.

• Beswick anticipates that generative AI will drive substantial value across various business functions, potentially translating into millions of dollars in benefits as the technology evolves.
• The IT department’s proactive approach to AI adoption positions it as a key driver of innovation and value creation within the company.

Broader implications for the insurance and consulting industry: Marsh McLennan’s strategic IT reorganization and AI adoption could set a new standard for technological innovation in the insurance and consulting sectors.

• The company’s approach demonstrates how traditional firms in these industries can leverage advanced technologies to enhance client services, streamline operations, and gain competitive advantages.
• As generative AI continues to evolve, firms that have laid the groundwork for its integration, like Marsh McLennan, may be better positioned to capitalize on new opportunities and address emerging challenges in risk management and consulting.