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Eighty-one percent of U.S. insurers say they plan to increase their AI spending the next year, the data showed, while most expect AI to account for a full 20% of IT spending within three to five years, up from just 8% in 2025.
“AI won’t replace insurance jobs—it will reshape them,” said Nilay Doshi, senior partner of insurance consulting at Wipro.
“AI takes over repetitive tasks like document review, data entry and initial submission, claims setup and triage,” he said. “Now, employees will have more capacity to deeply analyze the risk, investigate the claims, personalize customer engagement and allow more strategic decision making. This shift elevates the role of human talent from process execution to judgment, empathy and innovation.”
Other key takeaways from the wipro study include:
- Ninety-two percent of insurers say AI is essential to maintaining a competitive edge.
- Sixty-eight percent expect AI to deliver more accurate risk assessments and cost savings.
- Forty-four percent of smaller insurers still lack formal AI usage policies - leaving them exposed as regulations tighten.
- Seventy-one percent cite integration with legacy systems as a key challenge.
Meanwhile, underwriting remains a key area where insurers want to derive value from AI, according to wipro, with its ability to process large volumes of structured and unstructured data, and increasingly help insurers realize enhanced efficiencies and precision in underwriting.
To date, only 46% of insurers say they have extensively implemented AI systems into their underwriting workflows. Moving forward, insurers expect AI to transform underwriting, with 68% indicating that it will bring enhanced risk assessment accuracy and cost savings, 65% saying it will enhance compliance with regulatory requirements and 62% anticipating improved customer satisfaction and retention using AI.
“The precision and speed of AI perfectly complements the empathy, understanding and experience that only a human advisor can provide,” Doshi told PropertyCasualty360. “As AI becomes even more sophisticated, it will serve as a true partner to underwriters and adjusters, converting them to insurance advisors by working together to assess complex risk and dividing labor based on their respective strengths.”
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