Insurance Industry's AI Readiness Survey 2025 Reveals Tech Adoption Gaps

Digital Insurance's "AI Readiness Survey 2025" provides a comprehensive overview of artificial intelligence adoption within the U.S. insurance industry based on feedback from approximately 100 professionals. The survey reveals that only a minority of companies consider their technology infrastructure fully modernized, with significant challenges in accessing and analyzing unstructured data. Siloed enterprise content remains a common issue, impacting data integration efforts critical for effective AI deployment. Governance and policy frameworks around AI show mixed maturity; about half of respondents confirm the presence of firm AI usage policies, but fewer report established AI councils or robust bias monitoring systems. Data security concerns, cited by 41% of participants, are the primary barriers inhibiting broader AI implementation. These risks arise from vulnerabilities in AI systems handling sensitive personal information, emphasizing the need for enhanced cybersecurity measures. Skill gaps present another notable challenge. While 32% identify lack of in-house AI expertise as a significant obstacle, firms are actively addressing this through multiple strategies: nearly half are upskilling existing staff, 43% are partnering with technology vendors, and 41% are recruiting new employees with AI proficiency. This blended approach indicates a growing recognition of AI as a strategic competency in insurance operations. Insurtech investment remains robust with about 50 funding events reported in November 2025, underscoring sustained market interest. Industry trends identified include cybersecurity focus, the emergence of a digital workforce, and strategic transformation aiming to enhance risk assessment through AI-driven insights. The sector continues to navigate changing customer behaviors as financial services shift from physical to digital engagement. The survey and related research highlight the ongoing evolution of AI in insurance as organizations strive to integrate advanced analytics while managing governance, security, and workforce challenges. This understanding is essential for insurers aiming to leverage AI effectively in underwriting, claims management, and broader operational functions.