More than one-third of independent insurance agency employees are already using artificial intelligence for work tasks, with 57% of employees expressing interest in AI adoption for work, according to Liberty Mutual research.

The insurance industry finds itself at a technological crossroads as AI adoption gains momentum despite widespread apprehension within independent agencies, the report noted.

“The latest research showed that agent perceptions of AI have only slightly shifted – many still distrust AI and view it as a threat. However, interest in AI is growing, especially among agency leaders and younger generations of employee,” the report’s authors said.

Growing Interest Meets Persistent Caution

The generational divide emerges as a defining characteristic of AI adoption patterns, as Millennials and Gen Z employees are the most likely to be using AI, the report said.

Agency leaders also demonstrate notably higher enthusiasm for AI implementation compared to agency staff, the survey found:

• Two-thirds of agency principals, or 67%, are interested in using AI for work, compared with 49% of staff.
• Forty-one percent of principals view AI as an opportunity rather than a threat, while only 30% of staff held that view.
• Over half, or 54%, of principals want more tools and services at their agency to have built-in AI capabilities vs. 35% of staff.

Unofficial Adoption Creates Risk Management Challenges

According to the survey, 10% of insurance agency employees use AI daily for personal use, vs. 8% who use it daily for work. Weekly use of AI had a highest rates, with 18% using AI weekly for personal uses, and 16% using it weekly for work.

Widespread informal use of AI tools presents both opportunities and risks for insurance agencies. With employees increasingly turning to AI assistance without formal guidance or policies, agencies need guidelines to reduce potential risks and safeguard client information, Liberty Mutual said.

Strategic Implementation Requires Deliberate Planning

For agency leaders, the path forward demands a three-pronged approach: AI policy development, technology assessment, and employee engagement.

Technology audits reveal that many agencies already possess AI capabilities within their existing agency management systems, the report said. Rather than pursuing new solutions, agencies can maximize their current investments by exploring untapped functionalities.

Employee buy-in emerges as the critical success factor for AI implementation and agency leaders.

“You may be excited about AI, but your staff may still be skeptical. Reassure your staff that AI won’t replace them. Make sure to take the time to explain how you’re thinking about using AI in your agency and how AI-backed tools can help them,” the report said.

View the full report here. &