Investments in AI technology across the insurance industry remain steadfast, but AI deployment is still a "Wild West," according to agent and broker responses from Cake and Arrow's report, "
"The agents we spoke with are not resistant to AI," said Josh Levine, founder and CEO of Cake and Arrow. "They're curious, resourceful and already finding ways to use it. But too often, they're being left to figure it out on their own. The opportunity for the industry is not simply to build more AI tools. It's to design AI that fits how agents actually work, earns their trust and strengthens the human relationships at the center of insurance."
Despite big investments, AI adoption, strategy and governance are lagging. According to survey responses, while some insurance organizations are rapidly deploying AI, others are not using it at all. Most agents and brokers are at least somewhat experimenting with AI, however, though mostly for isolated tasks rather than embedded into core workflows.
The research shows that agents aren't asking for more automation, but they are asking for technology that complements how they already work. The report suggests that successful AI implementation will require a shift in focus from industry leaders; rather than prioritizing automation for its own sake, insurers should design AI experiences around the specific needs of agents and brokers. This includes tools that reduce administrative tasks and provide timely, relevant insights to complete tasks and boost efficiency.
"Technology doesn't roll itself out," Levine added. "For AI to make a meaningful difference in insurance distribution, it has to solve real problems inside real workflows. That requires more than technical capability. It requires intentional design."
Recent Gartner research shares similar findings. According to Gartner's global labor market survey,
"The survey revealed that in the shift to an AI-powered workforce, most leaders are mistaking basic access or adoption metrics for transformation," said Swagatam Basu, Gartner senior director analyst, in the press release. "This 'enablement illusion' is hiding risks and draining ROI."
Gartner predicts that by 2027, half of all businesses lacking a people-focused AI strategy will lose their top AI talent to competitors who prioritize comprehensive agent-AI integration. Just 27% of executives say they have a comprehensive AI strategy, and only 20% say their staff is truly prepared for AI adoption.
Gartner experts suggest that executives and business leaders should shift priorities from tracking basic AI adoption to implementing an ROI index that focuses on the depth and diversity of AI use. According to the report, leaders should also provide targeted AI tools and training, integrate AI into daily workflows and encourage experimentation and creativity to foster AI confidence and capability.
