Our Diversity Enriches Our Approach to Solving Problems — Nationwide Chief Advanced Analytics Officer

(US & Canada) Shannon Terry, Chief Advanced Analytics Officer at Nationwide, speaks with Marty Poniatowski, Director at AMD, in a video interview about working around hallucinations in generative AI (GenAI), the importance of empathetic human touch, the culture of teams, and balancing in-house development with buying externally.

Nationwide Mutual Insurance Company and affiliated companies, commonly shortened to Nationwide, is a group of large U.S. insurance and financial services companies based in Columbus, Ohio.

Speaking of hallucinations, Terry emphasizes that GenAI systems are inherently prone to hallucinations, which can be particularly challenging to manage. He explains that the organization’s approach to addressing this issue draws from actuarial science, a field in which the team is well-versed, given that they work closely with credentialed actuaries and the actuarial science team at Nationwide.

These professionals must adhere to strict Actuarial Standards of Practice (ASOPs) to ensure regulatory compliance, particularly when their products, which span both financial services and insurance, undergo state filings.

Terry also highlights that while GenAI can be useful for tasks like summarizing content or processing information quickly, such as when digesting PDFs or drafting emails, it is critical to apply the right tools to the right contexts. For example, AI-driven solutions that are helpful in everyday communication may not be suitable for high-stakes areas like underwriting, where precision and data integrity are paramount.

Further, Terry emphasizes the importance of combining human insight with technical solutions at Nationwide, where the core value centers on valuing people. In industries like insurance and financial services, where safeguarding personal futures and property is crucial, there is a significant responsibility to deliver positive outcomes. While enhanced mathematical models can help achieve better results, Terry believes that human involvement is vital, especially in situations where empathy and judgment are needed, such as during times of loss.

He underscores that relying solely on AI to make decisions would be insufficient without the involvement of individuals who can understand the nuances of a situation. Ultimately, Terry views the human element as an essential complement to the technical side, ensuring that the service provided truly supports the individual.

Sharing his views on organizational culture, Terry emphasizes that the key focus at the company is valuing people, with a particular emphasis on fostering diversity within teams. He highlights that this diversity extends beyond traditional fields like actuarial science, mathematics, or statistics, to include experts from areas such as clinical psychology, biochemistry, biology, economics, and political science. This varied expertise allows the team to approach challenges from multiple perspectives, enriching problem-solving.

When it comes to the balance between building and buying, Terry notes that while some operational tasks are better suited for external solutions to maintain efficiency, the company is strategic in determining where differentiation is most valuable. The focus is on applying diverse talent to the areas where innovation and competitive advantage are needed, leveraging data and expertise to address those critical challenges.

Adding on the talent aspect, Terry highlights the significant value of fostering strong connections with universities, both formally and informally, including an ongoing relationship with Ohio State University, which provides access to a steady stream of new talent. His team actively collaborates across various university programs to identify individuals interested in joining their initiatives.

He also emphasizes Nationwide's deep commitment to supporting the communities where its employees live and work. In Columbus, this commitment is evident through the involvement with Nationwide Children's Hospital, local food banks, and their longstanding partnership with the United Way. Terry finds it deeply rewarding to work for a company that aligns with his personal values, allowing him to perform at his best while contributing to meaningful causes.

CDO Magazine appreciates Shannon Terry for sharing his insights with our global community.

*Note: This interview was originally recorded on June 24, 2024