Abstract
“Our intelligence is what makes us human, and Artificial Intelligence is an extension of that quality.” – Yann LeCun.
This dissertation explores one of the most persistent challenges faced by financial institutions today: fraud. Fraud undermines the financial stability and trustworthiness of insurers and further threatens the broader integrity of the financial system. In this context, the study examines how the integration of Artificial Intelligence, a transformative technological advancement, can serve as a critical tool in combating insurance fraud. The research places Artificial Intelligence as a missing piece to the picture by demonstrating that its adoption in the insurance sector does not only allow for fraud detection and prevention, but also the fact that it has potential to attain future sustainability. South Africa has no laws in place to govern the use of Artificial Intelligence yet and this mainly contributes to the disadvantages that accompany its adoption. This dissertation acknowledges issues that come about with using Artificial Intelligence and concludes by recommendations to counter the issues in question.