Insurance's AI momentum may be misleading. Here's how to regain it.

Artificial intelligence is rapidly reshaping the insurance industry's efforts to modernize operations and customer experience, but there's one big difference from previous waves of transformation: the pace of change has accelerated dramatically. This is creating real pressure to show progress, leading to a flurry of AI pilots, announcements and vendor partnerships.

Each new AI announcement from a major insurer raises the stakes. A recent AM Best study found that 60% of insurers expect AI to significantly transform business models within one to three years, and 66% plan to increase AI spending over the next 12–24 months. Meanwhile, third-party administrator Sedgwick projects industry AI investment will reach $80 billion by 2032.

The good news is that AI tools will continue to become faster, cheaper and more accessible. But there's a catch: carriers will not capture meaningful value until they move beyond highly visible AI activity that may look like progress and toward real operational transformation. West Monroe's research, Insurance Modernization Under Pressure, suggests many are not there yet. Only 30% of insurers have scaled AI in claims, and just 23% have done so in underwriting, despite claims and underwriting being among the most AI-ready functions in insurance. The result is a growing gap between carriers that are visibly "using AI" and those that are fundamentally changing and transforming work.

Here are four keys to building momentum and unlocking the real value AI promises. 

1. Build with discipline

In Convr's 2026 Insurance Talent and Tech Trends Survey, more than 40% of the commercial insurance professionals polled expressed low confidence in their organizations' underwriting AI strategy, and 57% said they want more evidence before making a stronger commitment.

When it comes to AI, the industry's traditionally cautious reputation can be an advantage, offering an opportunity to apply much-needed rigor. The carriers best positioned to capture AI's value are those that apply the same precision and discipline they use in underwriting risk: rigorous methods, strong controls and a solid operational foundation.

This means starting with the fundamentals: clean, accessible and governed data; clear process ownership across underwriting, claims, distribution and IT; guardrails for model usage; and a workforce equipped to work alongside AI. Disciplined carriers also ask the right questions. They take the time to identify which business problems matter most and where AI can meaningfully improve underwriting judgment or claims outcomes. This intentional approach is the clearest path to sustainable, measurable value from AI.

2. Redesign work

One of the biggest mistakes we see is companies layering AI onto existing ways of working. If workflows are inconsistent or decisions reside in people's heads rather than in systems, AI won't solve problems. It will only expose them sooner.

To realize AI's full value, carriers must rethink how work gets done. As AI becomes more embedded into processes, roles evolve, escalation paths shift, decision ownership changes and performance metrics may need to be redefined. That's why workflow redesign is essential.

Carriers also need to be methodical in determining where automation ends and where human expertise remains essential. In the Sedgwick study, 75% of claims professionals said AI still requires human oversight. AI cannot replace human judgment in complex or emotionally sensitive claims. Cases involving ambiguous circumstances, nuanced coverage questions or significant personal impact demand expertise that considers context, communicates with empathy and advocates for policyholders.

3. Orchestrate change purposefully

AI-enabled operations are as much about people as they are about technology. Deploying new tools is relatively easy; changing behaviors in ways that create lasting impact is much harder. Without clear benefit stories, intuitive user experiences and visible leadership alignment, even the strongest technology investments can stall. It wasn't surprising that resistance to change was the most commonly cited obstacle to scaling AI in West Monroe's study. 

Carriers that are winning with AI aren't merely trying to navigate change. They are investing in purposeful change management that includes communication, training, leadership alignment and feedback loops. Change management shouldn't be an afterthought or a supporting function; it needs to be part of the process from day one. In fact, one of the best ways to approach AI adoption is to treat it as a change management effort, not a technology initiative. 

4. Cultivate trust

Trust is one of the most critical and often overlooked components of successful AI adoption. Claims adjusters need to trust AI recommendations. Underwriters need to understand how models reach their conclusions. Regulators must feel assured that AI-driven decisions are fair and explainable. When those stakeholders don't fully understand or trust the outputs, resistance grows and adoption stalls. 

It is far easier to build tangible things than intangibles like trust, so it's natural that organizations devote more resources to developing advanced models than to earning the confidence of those who will use them. Ultimately, the greater the trust in AI systems, the faster carriers can achieve adoption and scale the benefits across their organizations. 

Think advantage, not just activity

This is not the kind of work that makes headlines, and it is rarely easy or quick. But without these fundamentals in place, carriers will struggle to build and sustain momentum. 

In today's environment, one of the biggest challenges is distinguishing AI activity from AI progress. Eventually, the market will reward outcomes rather than announcements. Pilots, announcements and new tools can signal momentum, but only operational transformation creates lasting advantages. Carriers that focus on the essentials such as building with discipline, redesigning work, orchestrating change purposefully and cultivating trust, will be the ones that turn momentum into lasting competitive advantage.