Insurance Agencies Embrace AI Cautiously as Leadership Faces Policy, Practicality, and Staff Engagement Challenges

Insurance Agents Warm to AI, But Adoption Remains Uneven

Artificial intelligence is steadily making its way into insurance agencies, yet its adoption varies widely. According to the 2025 Independent Agents at Work Study by Liberty Mutual, interest in AI among independent agency employees is growing. More than half of those surveyed expressed interest in using AI tools at work, and over one-third have already integrated AI into their daily tasks.

Despite this, overall attitudes toward AI haven’t shifted dramatically. Skepticism remains, especially among older employees. Younger staff and agency leaders show more enthusiasm for experimenting with AI, signaling a generational split in comfort and confidence levels.

Three Priorities for Agency Leadership

The study highlights three clear priorities for agency leaders to effectively manage AI adoption:

• Create an AI policy. Even if AI tools aren’t officially adopted, employees may use external tools, raising risks around data security and compliance. A formal policy sets clear boundaries and protects client information.
• Focus on practical needs. Instead of chasing the latest AI hype, agencies should address real operational challenges. Leaders are encouraged to check if current management systems already include AI features before introducing new vendors.
• Engage employees. Leaders often see AI’s potential faster than their teams do. It’s important to present AI as a tool to support—not replace—staff. Involving employees in choosing and implementing AI, along with providing training and ongoing communication, helps build trust and confidence.

Recommendations for Agency Staff

For those working within agencies, the study suggests learning the basics of AI and experimenting with tools like ChatGPT or Copilot. These can help reduce repetitive tasks and improve efficiency. Staying curious and proactive in exploring AI benefits is key.

Open communication with leadership about AI use, expectations, and concerns is also important. This dialogue helps clarify boundaries and addresses any risks staff might perceive.

Implications for the Insurance Market

The uneven pace of AI adoption could widen the gap between early adopters and more traditional agencies. Those who successfully integrate AI may gain advantages in client service, such as faster quoting, personalized policy recommendations, and streamlined claims support.

Insurance carriers will need to support their agency partners by providing AI-enabled systems and ensuring workflows align across distribution channels. Regulators and industry groups will also monitor AI use in underwriting, pricing, and client interactions. Issues related to transparency, data usage, and bias will shape regulations that influence how quickly AI tools can be deployed.

For insurance professionals interested in learning more about AI tools and training opportunities, resources like Complete AI Training offer practical courses tailored to various skill levels and job roles.