Credit: VideoFlow/Adobe Stock

The bulk of insurance professionals have not fully scaled AI but nearly half think it will reach full maturity within the next two years, according to a study by Genpact.

Only 2% of insurers have fully scaled AI, the data showed, despite 49% predicting the technology to be fully integrated by 2028. According to Genpact, the gap reflects insurers’ challenges to align the components, data, workflows and culture that make AI fully operational at scale.

“Insurers have an enhanced intent and interest in leveraging and driving AI solutions across the enterprises,” Adil Ilyas told PropertyCasualty360.com, global business leader for insurance at Genpact.

“However, they are short of the foundational capabilities critical to scaling it responsibly,” he added. “For P&C insurers, the barriers are regulatory or compliance challenges, skills gaps, and technology limitations. By modernizing architectures and oversight mechanisms and expanding AI fluency and trust, insurers can move AI beyond pilot mode and turn it into a reliable driver of underwriting accuracy, claims efficiency and long-term resilience.”

AI integration challenges:

  • Value deficit: AI plays a significant role in decision-making, but judgment-driven decisions are still people-led. Until companies fundamentally reimagine how they operate in an AI-enabled world, true financial impact will remain out of reach.
  • Organizational inertia: When companies don’t close capability gaps, realign structures or manage change thoughtfully, the results they get from AI suffers.
  • Technological complexity: With greater AI adoption comes greater technological complexity. Both leaders and non-leaders face challenges integrating the technology into existing workflows.

“AI’s trajectory has accelerated dramatically,” Genpact said in the report. “As companies integrate AI into the core of their operations, they’re becoming autonomous enterprises, using AI that decides, acts, and learns alongside people to make strategic decisions in real time.”

Meanwhile, the AI in insurance market is projected to grow from $13.45 billion in 2026 to $154.39 billion by 2034, according to Fortune Business Insights, exhibiting a compound annual growth rate of 35.7% during the forecast period.

(Photo Credit: VideoFlow/Adobe Stock)

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