Insurance Industry Races to Scale AI Despite Roadblocks in Deployment

AI is quickly becoming a cornerstone of strategic growth across the insurance industry, with nearly 90% of executives naming it a top priority for 2025. According to Roots Automation’s latest survey, departments from claims to underwriting and IT are actively exploring AI to boost efficiency, cut costs, and improve customer satisfaction. Yet, while enthusiasm runs high, the operational reality shows a slower pace of implementation.

Only 22% of surveyed insurers currently run AI models in production, with most still testing or evaluating use cases. Leading adoption barriers include internal skill shortages (52%), data silos (40%), and uncertainty over AI’s real-world value (38%). Despite these challenges, executives are optimistic: 90% support AI adoption, and many view team-driven innovation and competitive pressure as major motivators.

Across departments, AI is expected to automate repetitive tasks and improve outcomes. Underwriting teams look to AI for quote speed and premium growth, while claims teams aim to reduce cycle times and enhance customer experiences. IT leaders, on the other hand, are focused on scaling AI across business units while modernizing tech stacks.

Success depends on several key factors, including model accuracy (71%), access to insurance-specific AI (45%), and measurable ROI (43%). Strategic partnerships, stakeholder education, and human-in-the-loop oversight are also critical to moving from pilot projects to enterprise-wide deployment. As the industry enters a transformative era, insurers that prioritize structured AI implementation will be best positioned to lead the market.