What's really holding carriers back from AI deployment?

The threat of cyberattacks, increasing in both severity and frequency, are top of mind with 39% of insurance professionals — and this fear is slowing down their AI deployments, according to in-depth research from Digital Insurance. 

Just over half, 52%, expect that a cyberattack will probably occur in the near future. This finding is reflected in other industry surveys, which also identified data security concerns as their top risk to monitor for a variety of reasons including the broader adoption of AI.

When asked to identify their company's barriers to AI implementation, most respondents selected data security risks as the top area of concern. Regulatory compliance concerns followed in second place, as the integration of AI into insurance frameworks also creates legal liabilities that carriers must consider as part of any deployment.

For some insurers, the problem isn't a lack of AI ambition — it's just not a feasible reality with their current technology infrastructure. The costs to implement new AI technology, and similarly, the fact that many carriers still possess legacy technology and systems remain significant challenges for tech innovation.

The Digital Insurance Predictions 2026 survey was fielded online from October to December, 2025. Respondents represent a range of organization types, with the largest shares from agencies/brokerages (33%), P&C carriers (18%), multi-line carriers (15%), health insurance carriers (12%) and life insurance carriers (7%).