How This AI Playbook Is Rewriting 100 Years of Strategy

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Each week, we see hundreds of new followers show up, and we all share one common goal. Building something that lasts. Whether you're scaling a startup, running a small business, or just obsessed with how great companies are made, you're in the right place. You’re not just a reader here, you’re part of our growing community of builders who believe that long-term thinking beats short-term hype. This week we covered AIG. One of the largest insurance companies in the world. I’m sure you’re all tired of seeing the word AI as much as the rest of us but when we saw a century old, multi-billion dollar company start implementing this tech with real results, our ears perked up. Here’s how the old is learning to grow with the new.

The Reinvention of a Giant

Most legacy companies talk about innovation. AIG is doing it at scale. Founded over a century ago, American International Group (AIG) was once the poster child for corporate bloat and crisis nearly collapsing during the 2008 financial meltdown. But in 2025, the narrative has flipped. AIG is now making headlines for something far more promising: its sweeping use of artificial intelligence to streamline operations, underwrite smarter policies, and slash costs. In this edition of Built to Last, we’re digging into how a 105-year-old insurance titan is finding new life through technology and what founders can learn from their playbook. The future of your business might just depend on learning from the past. Let’s dive in.

From Shanghai Startup to Insurance Superpower

AIG was founded in 1919 by Cornelius Vander Starr in Shanghai, China. At the time, insurance was mostly a Western affair, and Starr saw an untapped opportunity in the East. He began by selling fire and marine insurance to local merchants and rapidly expanded operations across Asia. By the 1930s, AIG had grown into a major player and eventually relocated its headquarters to New York City after World War II. Over the next few decades, it scaled into a global powerhouse, offering everything from life insurance to corporate risk management. What set AIG apart early on wasn’t just product expansion, it was geographic daring and operational reach. Starr’s strategy: go where others won’t, and systematize everything.

MODERN PIVOT: Betting Big on Artificial Intelligence

Fast forward to 2025, and AIG is no longer known just for traditional insurance products. It's now making headlines for an ambitious AI-driven transformation. In June 2025, AIG announced a full-scale AI deployment across claims management, underwriting, and fraud detection. The company revealed that AI has cut average claim processing time by 40%, and helped them save over $1 billion in operating costs annually. Using machine learning, they’ve also improved underwriting accuracy by factoring in real-time data streams from IoT devices to satellite imagery which has helped improve margins in key verticals like property and casualty insurance .

Rather than viewing AI as a buzzword, AIG treated it like an operating system reboot. The transformation didn’t just involve new software, but also upskilling thousands of employees, updating compliance frameworks, and rethinking customer engagement. Chatbots now handle over 70% of initial customer queries, with satisfaction scores on those interactions surpassing human counterparts. But what’s more impressive is the cultural shift. AIG’s pivot wasn’t about eliminating jobs, it was about upgrading its workforce. As CEO Peter Zaffino said in a recent shareholder call: “We’re not just adding technology; we’re creating a smarter, faster, and more resilient AIG.”

CORE LESSON: Reinvention Starts with Systems, Not Slogans

AIG’s shift to AI isn’t just a tech upgrade, it’s a masterclass in operational reinvention. What’s most instructive is how they tied automation directly to core KPIs: faster claims, lower overhead, and tighter risk controls. Most companies bolt AI onto broken processes and hope for magic. AIG took the opposite approach. They first audited internal systems, identified inefficiencies, and rebuilt those workflows with AI at the center. The results speak volumes including a 35% boost in underwriting accuracy and improved customer retention due to faster, more personalized service .

There’s a broader lesson here for any founder or operator: transformation doesn’t start with shiny tools, it starts with clarity. AIG knew exactly what metrics mattered and focused their AI strategy on improving them. They didn’t try to automate everything overnight. Instead, they created repeatable frameworks that could scale, evolve, and adapt. For startups and legacy firms alike, that’s the real gold: building operational systems that work harder than your marketing ever could.

TAKEAWAY: What Founders Can Learn

Whether you’re running a tech startup or a brick-and-mortar service business, the AIG playbook has powerful takeaways. First, don’t get distracted by trends. Anchor new tools to real problems. If AIG can use AI to cut waste and boost customer loyalty in a 100-year-old industry, you can do the same in yours. Start by identifying your most expensive or slowest processes. Then ask: could software, automation, or AI help make these leaner?

Second, make change cultural. AIG didn’t just install new software, they trained employees, updated processes, and made AI an organization-wide priority. That mindset made all the difference. Technology won’t fix a business that isn’t aligned. But if you create systems that are ready for scale, those same tools can become your competitive edge. Legacy isn’t a weakness unless you let it be.

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