For the past two years, there was little evidence that Lemonade (NYSE: LMND) Chief Executive Officer Daniel Schreiber was correct in his belief that artificial intelligence (AI) would revolutionize the insurance industry. As a result, investors lost faith in Schreiber and his company, and the stock is down 92% from its Jan. 11, 2021, all-time high of $183.26.

However, investor confidence in the company has risen recently. First-quarter results revealed a positive trend in one crucial metric investors use to evaluate if Lemonade's AI-based insurance revolution can replace conventional insurance business models. As a result of signs of progress, the stock price has gained about 11% this year, more than the S&P 500.

So has Lemonade turned the corner in proving its AI-fueled business model can achieve better results than traditional insurance? If so, the company might prove to be the future of the insurance industry.

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Source Fool.com