In 2016, Lemonade (NYSE: LMND) embarked on a journey to transform the insurance industry. It placed technology at the center of its mission, developing artificial intelligence (AI) algorithms to interact with consumers, pay claims, and calculate more accurate premiums.

It seemed crazy at the time, especially in an insurance industry that was entrenched in its traditional processes. But with the current surge in companies using AI, Lemonade's strategy now seems incredibly obvious in hindsight.

The company just reported its 2023 first-quarter earnings and its stock soared 27% on the day. As it turns out, the positive impact of AI on its business is rapidly becoming apparent. Lemonade stock is still down 91% from its all-time high, but here's why that's a big opportunity to buy right now.

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Source Fool.com