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More than half of small business leaders believe artificial intelligence will play a “crucial role” in worker safety over the next five years, according to a new report from Pie Insurance.

A from just over a thousand small businesses found that 64% of leaders are bullish about AI’s role in workplace safety in the near future. The survey found 81% of those businesses are open to incorporating AI into daily operations and that 44% actively use AI today.

“If you think about it, small businesses in particular][ don’t have the safety resources that large companies have,” said Carla Woodard, SVP of claims at Pie, an insurtech specializing in commercial insurance for small businesses. “AI can definitely help them proactively identify and address those risks.”

Pie found that of the small businesses using AI, 97% reported increased operational efficiency and 73% experienced improved workplace safety. Pie did not collect specific examples of the kinds of AI products currently tapped by these businesses.

Woodard said tools like ChatGPT can be used to create safety checklists or resource guides for employees and leadership to help manage safety needs. AI-powered surveillance systems can detect unsafe behaviors in real time, she added, and predictive analytics can anticipate hazards before they occur.

AI-driven telematics can monitor and improve driver safety, Woodard said, and automated safety training through virtual safety assistants can make it easier for employees to learn and apply best practices to reduce workplace injuries.

Per Pie’s findings, 75% of small businesses reported workplace injuries in the past year. Nearly half of respondents admitted to improvising safety measures due to a lack of proper equipment. Mental health-related injuries (22%); slips, trips and falls (20%); cuts, lacerations and punctures (18%); and overexertion and repetitive strain injuries (13%) were the most common workplace injuries.

Woodard expects AI adoption to grow and its uses to expand in the next half decade.

When asked how she foresees the technology changing, Woodward said she anticipates predictive analytics tools — such as those used to foresee hazards — will become more accurate. These include predictive maintenance systems that monitor machinery and equipment to detect potential failures, as well as emergency response systems that detect fires and gas leaks “in more real time than your traditional sensors.” She also pointed to AI that analyzes employee movements and ergonomics and identifies risks or behaviors that could potentially lead to injuries.

Still, Woodward said risks of using AI tools include the accuracy and reliability of AI’s decision-making and output. The tools and models are only as effective as the data they are trained on, Woodard explained.

“It’s going to be important for anybody who is adopting AI to really have a high level of confidence in the accuracy,” she added, “and having safeguards for, potentially, where there may be a lower level of confidence in the accuracy. Because it could lead to incorrect assessments if they’re not aware of that.”

Over-relying on AI could create a false sense of security, Woodard said. She believes that the best approach for small businesses will be to balance the integration of AI to enhance human safety oversight — instead of replacing it entirely. Clear protocols for when human judgement is needed are important, she said.

Pie has not seen premium discounts for small businesses who use AI in their safety programs. Woodard said a financial incentive still exists, though: The technology has the potential to save small businesses money by avoiding or reducing losses.

“I think that agents and brokers need to be aware and embrace the idea that AI can make safety proactive instead of reactive,” Woodard said. “It can really help their clients predict risk and help them to reduce the potential for losses. It can reduce fraud. It can reduce the number of claims and, in general, just lower costs for them.”

Topics InsurTech Data Driven Artificial Intelligence Leadership