Insurance Industry Expands AI Use but Faces Challenges in Scaling and Customer Trust

A recent report from Genpact and AWS shows that while a majority of U.S. insurers have implemented artificial intelligence in some form, the benefits have yet to reach most customers. The study, based on feedback from 200 senior executives and 1,000 consumers, reveals that 77% of U.S. insurers are using AI, but often in fragmented ways limited to specific departments like claims, data analytics, and underwriting. Only 13% have achieved company-wide AI deployment, and 31% remain in pilot phases.

The primary roadblocks to scaling AI aren’t technical, but organizational. Governance, risk oversight, and data quality are the top barriers cited. With 62% of executives seeing AI’s competitive edge in high-volume areas such as claims processing, many companies still lack the KPIs needed to measure return on investment. Additionally, just 2% of insurers say their workforce is AI fluent, highlighting the urgent need for internal upskilling and AI-specific talent strategies.

On the consumer side, only 36% of U.S. customers report improved digital experiences, mainly due to insurers hesitating to deploy AI in customer-facing roles. The trust gap remains wide, though younger generations show more openness to AI for quotes and claims. The report encourages insurers to address this by improving AI governance, data readiness, and employee training, while balancing automation with human interaction—especially in high-stakes moments like claims.

Agentic AI—systems capable of autonomous, real-time decision-making—represents the next leap in capability. However, realizing its benefits will require insurers to move from cautious pilots to bold, strategic adoption focused on long-term value, customer trust, and organizational alignment.