How AI fits into an insurance budget

August 3, 2025 3:54 PM

A top-down view of a group of people with an overlay holographic image of a web with AI in the center.

Artificial intelligence adoption across the insurance industry is increasing, according to a study from Arizent, the parent company of Digital Insurance. The results suggest that more than half of insurance professionals anticipate deployment of AI in the next 12 to 18 months.

The survey highlights a positive ROI from AI implementations is among the biggest challenges for companies but AI investments are delivering returns.

The research was conducted online by Digital Insurance and Arizent in January to March of this year. There were 133 participants from the insurance industry who work in the industry at any level for any organization regardless of size.

Nearly all respondents say AI implementation meets or exceeds their goals. More than eight in 10 respondents said they believe their organization is seeing positive results from AI investments at least some of the time.

Results show that 18% on average of the total AI budgets are going to Gen AI technology and more than nine in 10 of respondents suggest they expect Gen AI to be implemented in some form within the next 12 to 18 months. Property and casualty insurance carriers as well as health insurers are more likely to have an aggressive strategy. It appears that agencies and brokerages are using an incremental approach.

Nearly two-thirds, 63% of the respondents said their organization is implementing Gen AI in at least small-scale projects. Companies that are experiencing positive ROI on AI are also diverting a higher percentage of the technology budget to AI.