Unlocking AI in Insurance: 82% of Leaders Embrace AI, Yet Deployment Struggles Persist
The adoption of artificial intelligence (AI) is becoming increasingly critical for insurance companies looking to enhance their business performance. A recent survey reveals that a significant 82% of insurance leaders prioritize AI to transform their operations, despite facing challenges in scaling these solutions effectively.
Key Findings from the AI Adoption in Insurance Report
The inaugural State of AI Adoption in Insurance 2025 report, conducted by Roots, surveyed 242 insurance executives. It highlights the dual nature of AI’s potential and the hurdles insurers encounter in its deployment.
Positive Outlook Amidst Challenges
- Nearly 90% of respondents expressed a positive outlook on AI.
- 67% strongly favor AI implementation to improve operational efficacy.
- However, only 22% of insurers have successfully scaled AI solutions.
Obstacles to AI Implementation in Insurance
The survey identified several key barriers that hinder the widespread adoption of AI in the insurance sector:
- Skills and Resource Constraints: 52% cited a lack of qualified talent as a significant barrier.
- Data Challenges: 40% indicated issues with data integrity and accessibility.
- Regulatory Concerns: 36% mentioned compliance and regulatory issues as challenges.
Department-Specific AI Priorities
AI priorities vary across different departments within insurance companies:
- Claims Teams: Focus on improving claims processing efficiency (72%) and reducing cycle times (64%).
- Underwriting Teams: Aim to increase premium growth (75%) and accelerate quote speed (53%).
- IT Operations Teams: Work towards scaling AI across the business (65%) and modernizing technology infrastructure (45%).
Success Factors for AI Initiatives
According to insurance executives, the following elements are crucial for successful AI deployment:
- AI Accuracy: 71% believe this is essential for effective solutions.
- Insurance-Specific AI Models: 45% advocate for tailored models.
- Speed to ROI: 43% emphasize the importance of quick returns.
- Speed to Production: 42% consider fast implementation critical.
Current AI Use Cases in Insurance
Currently, insurers primarily utilize AI for:
- Data and document processing (64%)
- Process automation (60%)
Industry Insights from Roots’ CEO
Chaz Perera, CEO and co-founder of Roots, remarked on the strategic importance of AI in the insurance sector: “Insurance executives are aware of AI’s transformative potential. Our survey indicates a strong commitment to AI as a means to enhance operational efficiency, reduce costs, and improve customer satisfaction. Despite the challenges, underwriting, claims management, and IT leaders are dedicated to making AI a fundamental part of their future success.”
Company Rebranding and Future Focus
Alongside the survey, Roots announced a rebranding from Roots Automation to simply Roots, reflecting its commitment to advanced AI solutions. The company also unveiled a new logo and website.
The State of AI Adoption in Insurance 2025 survey included insights from various insurance executives, business line owners, and IT professionals, with 95% of participants based in the United States.
For more information on AI in insurance, visit our page on AI in Insurance.
