Chatbot Meets Black Box - Ahead Of The Curve

Research evidence excerpt

Chatbot Meets Black Box - Ahead Of The Curve

Global Research INDUSTRY NOTE

June 9, 2026

■Health Care Facilities & Services Chatbot Meets Black Box - Ahead Of The Curve

TD SECURITIES (USA) LLC THE TD COWEN INSIGHT

EQUITY RESEARCH In our base and bull case, AI-driven G&A savings could boost leading health insurers' profit margins

Gary Taylor and earnings power by 80-160bps and 20-50% respectively by 2030, but the industry's regulatory and

646 562 1450 competitive structure leads us to question the long-term durability of such gains.

gary.taylor@tdsecurities.com

Ryan Langston Our Thesis: Advancements in artificial intelligence (AI) are expected to further automate portions of knowledge-based

646 562 1418 financial service & insurance industries; health insurance is no exception. In the intermediate term, we anticipate a period

ryan.langston@tdsecurities.com of at least modest productivity and profit margin gains.

TD SECURITIES (USA) LLC - WASHINGTON What Is Proprietary? We quantified the cost of insurers' various administrative functions. These costs are not disclosed

RESEARCH GROUP - USA in SEC filings and therefore are not commonly understood by public market investors. We conducted a virtual roundtable

MACRO POLICY interview with executives from two large health insurers.

Molly T. Turco Financial & Industry Model Implications: In our base and bull case, AI-driven G&A savings could boost leading health

202 868 5309 insurers' profit margins and earnings power by 80-160bps and 20-50% respectively, by 2030.

molly.turco@tdsecurities.com

What to Watch: Over the next year we expect large insurers to increase disclosures and guidance regarding AI-related

spending, expected returns, and potential EPS impact.