Survey Reveals Two-Thirds of Independent Agencies Aim to Boost AI Adoption This Year

According to a recent report from The Big “I” Agents Council for Technology, over two-thirds of independent agencies are planning to enhance their use of artificial intelligence (AI) within the next year. However, only 8% of these agencies currently have AI integrated into their daily workflows.

The annual tech trends report reveals that 38% of respondents are “very likely” to increase their AI usage, while 30% are “somewhat likely” to do so in the coming months. The primary motivations for adopting AI include operational efficiency (60%) and improved staff productivity (52%).

Despite the enthusiasm for AI, concerns remain. Data privacy and compliance risks (24%) and the potential for inaccurate outputs (22%) are significant worries among agencies. Kasey Connors, executive director of the ACT, described the findings as “a pivotal moment” for independent agencies. She emphasized that the long-term success of AI adoption will depend on clearer governance, enhanced training, and more integrated technology strategies.

Interestingly, nearly one-third of survey participants (31%) reported that they are not currently utilizing AI, while 33% are merely experimenting with the technology. Another 22% indicated that their AI usage is limited to specific areas.

ACT highlighted a “growing gap” between the potential benefits of AI and the operational readiness needed for effective implementation. Several constraints were identified, including a lack of documented processes, vendor-related confusion, resource and budget limitations, and fatigue from managing multiple tools and security protocols.

“AI is entering agencies at a time when many are already grappling with disconnected systems and limited automation,” Connors noted. “This complexity complicates the transition from experimentation to impactful implementation.”

Agents express more concern about the repercussions of misusing AI than its cost. Issues surrounding data privacy, compliance, and accuracy must be addressed before agencies feel comfortable scaling their AI efforts. Beyond these concerns, 17% of respondents worry about losing the human touch in their services, while 16% admit they are unsure how to effectively apply AI technology.

Approximately 45% of survey respondents reported using ChatGPT and other large language models. However, fewer agencies are utilizing AI in policy comparison tools (20%), marketing tools (18%), chatbots and virtual assistants (13%), or document and data extraction tools (13%).

In the report, ACT suggests that “AI in its current form should be treated like a junior colleague.” While it can process vast amounts of information quickly, it still requires oversight for complex or high-stakes decisions.

Alarmingly, only 13% of agencies have a formal AI policy in place. More than half (56%) lack any policy, and nearly 44% rely on peer-to-peer training for new technology tools or systems. “This situation must change in the coming year to close significant security and liability gaps,” ACT emphasized.

Topics
Trends
InsurTech
Data Driven
Agencies
Artificial Intelligence
Numbers
Independent Agencies

According to a recent report from The Big “I” Agents Council for Technology, over two-thirds of independent agencies are planning to enhance their use of artificial intelligence (AI) within the next year. However, only 8% of these agencies currently have AI integrated into their daily workflows.

The annual tech trends report reveals that 38% of respondents are “very likely” to increase their AI usage, while 30% are “somewhat likely” to do so in the coming months. The primary motivations for adopting AI include operational efficiency (60%) and improved staff productivity (52%).

Despite the enthusiasm for AI, concerns remain. Data privacy and compliance risks (24%) and the potential for inaccurate outputs (22%) are significant worries among agencies. Kasey Connors, executive director of the ACT, described the findings as “a pivotal moment” for independent agencies. She emphasized that the long-term success of AI adoption will depend on clearer governance, enhanced training, and more integrated technology strategies.

Interestingly, nearly one-third of survey participants (31%) reported that they are not currently utilizing AI, while 33% are merely experimenting with the technology. Another 22% indicated that their AI usage is limited to specific areas.

ACT highlighted a “growing gap” between the potential benefits of AI and the operational readiness needed for effective implementation. Several constraints were identified, including a lack of documented processes, vendor-related confusion, resource and budget limitations, and fatigue from managing multiple tools and security protocols.

“AI is entering agencies at a time when many are already grappling with disconnected systems and limited automation,” Connors noted. “This complexity complicates the transition from experimentation to impactful implementation.”

Agents express more concern about the repercussions of misusing AI than its cost. Issues surrounding data privacy, compliance, and accuracy must be addressed before agencies feel comfortable scaling their AI efforts. Beyond these concerns, 17% of respondents worry about losing the human touch in their services, while 16% admit they are unsure how to effectively apply AI technology.

Approximately 45% of survey respondents reported using ChatGPT and other large language models. However, fewer agencies are utilizing AI in policy comparison tools (20%), marketing tools (18%), chatbots and virtual assistants (13%), or document and data extraction tools (13%).

In the report, ACT suggests that “AI in its current form should be treated like a junior colleague.” While it can process vast amounts of information quickly, it still requires oversight for complex or high-stakes decisions.

Alarmingly, only 13% of agencies have a formal AI policy in place. More than half (56%) lack any policy, and nearly 44% rely on peer-to-peer training for new technology tools or systems. “This situation must change in the coming year to close significant security and liability gaps,” ACT emphasized.

Topics
Trends
InsurTech
Data Driven
Agencies
Artificial Intelligence
Numbers
Independent Agencies