NEW YORK - EXL [NASDAQ: EXLS], a company specializing in data analytics and digital operations solutions, has announced the introduction of its EXL Insurance LLM, an industry-specific language model (LLM) aimed at enhancing the accuracy and efficiency of insurance claims and underwriting processes. The announcement was made on September 26, 2024.
The EXL Insurance LLM is designed to support specific insurance tasks such as claims reconciliation and data interpretation, which have posed challenges for general LLMs. According to internal studies, the model has achieved a 30% improvement in accuracy over leading pre-trained models like OpenAI GPT4.
Developed in collaboration with NVIDIA (NASDAQ:NVDA) AI Enterprise, the model utilizes NVIDIA's NeMo AI platform for training and deployment, employing methods like low-rank adaptation and supervised fine-tuning. The system also integrates NVIDIA Triton Inference Server to enhance performance across single and multi-node setups.
Anand "Andy" Logani, EXL's executive vice president and chief digital officer, highlighted the model's ability to process vast amounts of data, including medical records and claims histories, to produce accurate and cost-effective results while maintaining full regulatory compliance.
The EXL Insurance LLM is part of a broader trend identified by Gartner (NYSE:IT), which predicts that more than 50% of GenAI models used by enterprises will be industry or function-specific by 2027. EXL's focus on the insurance sector reflects this shift towards specialization in artificial intelligence applications.
EXL, founded in 1999 and headquartered in New York, has over 55,000 employees globally. The company emphasizes its commitment to transforming operations using data, analytics, and AI across various industries, including insurance, healthcare, and financial services.
The company's forward-looking statements, as customary, caution against placing undue reliance on these projections, acknowledging the unpredictable nature of business and economic factors.
This news article is based on a press release statement from EXL.
In other recent news, Exlservice Holdings (NASDAQ:EXLS), Inc. has been making significant strides in various areas of its operations. The company reported a year-over-year increase in revenue by 11% to $448 million in the second quarter of 2024, alongside an 11% growth in adjusted earnings per share to $0.40. This robust financial performance is attributed to the successful execution of a data and AI-led strategy across the Analytics and Digital Operations and Solutions businesses.
Simultaneously, Exlservice announced the strategic acquisition of ITI Data, a move aimed at enhancing its data management capabilities and expanding its client base. The company also revised its full-year revenue guidance upwards to between $1.805 billion and $1.83 billion, indicating an expected growth of 11% to 12% year-over-year. The adjusted earnings per share are anticipated to be in the range of $1.59 to $1.62, reflecting a projected growth of 11% to 13% year-over-year.
In addition to these developments, Exlservice expanded its credit facilities, securing an additional $200 million in funding to increase its financial flexibility. This amendment to its existing credit agreement includes a $100 million increase in revolving credit commitments and a new $100 million term loan facility, managed by Citibank, N.A. as the administrative agent.
Furthermore, Jefferies upgraded Exlservice's stock rating from Hold to Buy, reflecting the firm's confidence in the company's financial prospects and market position. The price target for Exlservice was raised to $42.00, up from the previous target of $35.00, based on a valuation of 19 times the firm’s projected adjusted earnings per share for 2025.
InvestingPro Insights
In light of EXL's [NASDAQ: EXLS] recent announcement about their industry-specific language model, the EXL Insurance LLM, investors may be interested in the latest financial metrics and market performance of the company. According to InvestingPro data, EXL boasts a market capitalization of approximately $5.98 billion, reflecting the company's solid positioning in the market. The company's P/E ratio stands at 34.44, indicating investors' willingness to pay a premium for EXL's earnings, which might be attributed to the company's innovative approaches and growth potential in the AI and analytics sectors.
EXL's revenue growth over the last twelve months as of Q2 2024 has been reported at 10.91%, showcasing the company's ability to expand its operations and revenue streams effectively. This growth trajectory is particularly relevant as it demonstrates the company's potential to capitalize on the increasing demand for industry-specific AI solutions, such as the EXL Insurance LLM.
InvestingPro Tips highlight that EXL is trading near its 52-week high, with a price percentage of 99.57% of that peak, which may indicate strong market confidence in the company. Additionally, the company has seen a robust return over the last three months, with a 21.58% price total return, underscoring investor optimism surrounding EXL's recent activities and future prospects.
For those looking for deeper insights and a comprehensive analysis of EXL, InvestingPro offers additional tips, including observations on the company's share buyback strategy, earnings revisions, and debt levels. There are currently 15 exclusive InvestingPro Tips available for EXL, which can be accessed at https://www.investing.com/pro/EXLS for investors seeking to make informed decisions.
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