Nearly a third of auto and home insurance customers now use AI tools at some point in the insurance process, and the technology is driving real purchasing decisions, according to a new J.D. Power study. Among consumers who used AI to shop for a new policy, 42% bought one based on the experience.
The study, released August 31, found that 29% of customers use AI to research products and coverage, service accounts, understand coverage before filing a claim, or shop for quotes. That adoption rate puts AI alongside established digital channels as a routine part of insurance workflows.
Where consumers turn for AI assistance
Insurers' own tools are holding their ground against third-party platforms. Among consumers using AI for research, 34% use tools provided by insurers on their websites or apps, while 33% use third-party websites or apps. The gap widens for account servicing: 27% of customers use insurer-provided tools, compared with just 8% who use third-party options.
For quote shopping specifically, 25% of consumers use insurer-provided tools and 21% use third-party solutions. The numbers suggest carriers that invest in their own AI interfaces can capture customer attention before competitors do.
AI's influence extends beyond research. More than one-third (37%) of customers who used AI to research products or coverage options changed their policy based on the information they received. For insurance professionals working with AI for Insurance, the data points to a shift in how customers evaluate and select coverage.
What the data signals for insurers
"Just as we've seen with the internet and mobile apps, AI is rapidly becoming a critical conduit to key policy shopping, research and account management decisions among auto and home insurance customers," said Tony Soloman, director of insurance intelligence at J.D. Power. "This is a multidimensional challenge and opportunity for insurers."
The trend mirrors broader consumer behavior in vehicle purchasing. A recent Cox Automotive report found 24% of consumers say AI helps them feel more prepared when working with dealerships, and 63% say they will definitely or probably use AI for their next vehicle purchase. Dealers face their own measurement gap: 69% expect AI to drive sales and revenue growth, but about one in three either aren't measuring AI's impact or have no clarity on how they're measuring it.
For insurers, the parallel is clear. Customer-facing AI tools are no longer experimental. They are becoming a standard channel, and the customers using them are acting on what they find. Teams evaluating AI Agents & Automation for claims, underwriting, or policy servicing are building on a foundation that consumers have already started using.
Why this matters for insurance professionals
Customers who use AI to research coverage are changing policies at a 37% rate, and 42% of AI-assisted shoppers buy a policy. That means the quality and accuracy of AI-delivered information directly affects retention and acquisition. If your organization's AI tools produce outdated or incomplete answers, you're not just delivering a poor digital experience - you're actively losing business to competitors whose tools give better guidance. Audit what your AI surfaces say about your products, and treat those outputs with the same compliance and accuracy standards you apply to licensed agents.
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