Insurance Industry Accelerates AI Adoption with Majority Expecting Implementation Within 18 Months

Digital Insurance, a leading information resource for insurance sector executives, has released new research indicating rapid artificial intelligence adoption across the insurance industry, with more than half of organizations expecting implementation within 12 to 18 months. The report, sponsored by Salesforce, reveals that AI is transitioning from pilot projects to enterprise strategies, with many companies already demonstrating tangible returns on their investments.

The research provides critical insights into how insurance organizations are implementing AI technologies, what priorities are driving adoption, and what barriers are hindering broader success. Based on proprietary research conducted with professionals across the insurance sector, the findings show how different types of organizations are navigating this transformative phase. The data indicates that nearly all organizations expect their AI spending to increase over the next 12 months, with only a few companies anticipating level or decreased investment.

Janet King, SVP of Content Strategy and Research at Arizent, Digital Insurance's parent company, emphasized that AI investments are already delivering returns, particularly for firms that have implemented them aggressively to improve operational efficiency. She noted that at this stage in the adoption curve, the most advanced companies appear to identify more opportunities for positive returns, suggesting that early leaders may maintain their competitive advantage for the foreseeable future.

The research highlights several key areas where companies are finding the most value from their AI investments, while also identifying where results are falling short of expectations. It examines what factors are driving some organizations to accelerate their AI strategies while others face implementation challenges. The report also explores how generative AI is reshaping customer experience conversations within the insurance industry and provides insights into current spending patterns and expected shifts in investment priorities over the coming year.

As AI deployments scale across the industry, organizations are facing increasing cost pressures and must make difficult decisions about modernization, budgeting, and strategic prioritization. The findings suggest that companies trailing their peers in AI adoption will need to accelerate their strategies significantly to avoid falling further behind as early adopters continue expanding their capabilities and competitive advantages. The full research report is available for download at https://www.americanbanker.com/payments/news/embedded-payments-demand-comes-from-health-care-travel.