MarshBerry’s 2026 Technology & Governance Report found that 55% of respondents expect AI to enhance broker productivity and value while 27% believe that AI will significantly reshape the broker’s role. That means 82% are expecting AI to have an impact. But the same study found that only 13% are actively using AI tools in multiple parts of the business.
These stats reveal a simple truth: AI reality within the insurance industry is a bit all over the place. Clearly, this requires a balancing act between action — gaining advantages now — and caution, waiting to see how the market sorts out the winning AI applications from the duds. Unlike the entry of PCs into the workplace, where Microsoft established immediate and unshakeable dominance from the start, AI applications are competing across a “wild west” landscape. The challenge is how to keep from falling behind without running full speed down an AI rabbit hole.
That challenge is made even more difficult by the seemingly endless AI “noise.” According to Insurtech Insights, during the first quarter of 2026, anywhere from three to ten AI-related product announcements were made each week by carriers, Managing General Agents (MGAs), brokers, and Insurtech vendors. And that trend will continue, which means that even before this article gets published, another ten new AI solutions will be announced.
Clearly, the winners in this environment will be the firms that start now with a disciplined, strategic approach that stays focused on solving the specific business problems particular to their firm.
AI is already here — not coming soon
For many firms, AI still feels like a future-state discussion. But if you remember Microsoft’s “Clippy” – the animated, paperclip-shaped Office assistant who would pop up to say, “It looks like you’re writing a letter!” – guess what? That was AI. At this moment, despite the uneven degree and fragmented manner of usage, AI is definitely being leveraged in the insurance industry more widely than “Clippy” ever was.
In fact, AI is already helping brokers:
- Conduct prospect research
- Summarize company information
- Analyze industries
- Prepare for meetings
- Draft communications
- Evaluate submissions in underwriting
- Improve fraud detection and speed up review in claims
- Automate repetitive administrative tasks
That’s why waiting has become increasingly risky. Firms that delay AI adoption are not preserving the status quo. They are losing ground while competitors learn, improve, and become more efficient. If a firm has not begun experimenting with AI in some way, it risks falling behind.
AI adoption requires leadership from the bottom up
One of the most important realities about AI is that it’s not purely a technology issue. It’s a people issue. Already, some AI initiatives are failing not because the technology is bad, but because employees don’t know how to use it, don’t understand why it matters or haven’t bought in to the idea that it solves a real problem. That’s why successful firms begin by establishing a taskforce that includes members from the teams who are actually doing the work. Producers, account managers, service & claims teams, and operations staff are often the best sources for insight into where friction exists and where AI could create value. When employees help identify the problems and shape the solution, adoption tends to improve.
Start simply and strategically
The question is not whether to start incorporating AI. The question is how. One of the biggest misconceptions is that firms need a complex strategy, a major budget, or a complete tech-stack overhaul before they can begin incorporating AI in a meaningful way. They do not.
Here are just two simple examples of how an AI tool such as ChatGPT, Copilot, Claude, Grok, etc., can be leveraged for significant effect and efficiency.
Producer/Sales:
- Problem: A middle-market producer preparing for their first meeting with a manufacturing prospect. They can paste links to the company’s website and recent news into the AI tool.
- Prompt: “Summarize this company’s business model, key risks, and likely insurance exposures and also suggest five questions I should ask in a first meeting.”
- Result: In under a minute the producer is provided with a clearer understanding of the prospect’s risks, more tailored questions, and stronger positioning as a specialist.
Account Management:
- Problem: An account manager handling a renewal with multiple carrier quotes and a long email thread. They can paste the email thread and key proposal details into the AI tool.
- Prompt: “Summarize the key changes in coverage, pricing differences, and any potential gaps. Then draft a client-friendly email explaining the renewal in plain language.”
- Result: The manager edits the output for accuracy/compliance and is quickly able to send a clear, more structured client communication.
A firm’s AI taskforce should begin by identifying one or two areas where AI can solve a specific problem or remove friction from the business. Once those early use cases prove valuable, firms can expand from there while continuing to collaborate, monitor, and adjust.
Don’t chase the shiny object
While some firms remain hesitant about AI, others are making the opposite mistake: reacting too quickly. The volume of AI products, integrations, and vendor pitches in the market can be overwhelming. New platforms appear almost daily, each promising to save time, improve close rates, automate service, or revolutionize the client experience. That can lead firms to buy technology before they have clearly defined what problem they’re trying to solve.
There is also a practical reason for patience. Some AI capabilities that currently exist as expensive standalone tools may soon become native features within agency management systems, CRMs, and other existing platforms. That means firms should be careful not to overinvest in tools today that could become standard functionality tomorrow. A disciplined AI strategy that focuses on what the firm needs, as opposed to what a tech company is offering, is more likely to create long-term value than buying tools that employees never fully adopt.
Standing still is becoming a competitive risk
Insurance brokers do not need to become technology companies. But they do need to recognize that AI is a permanent part of the competitive landscape. Firms that use AI thoughtfully can respond faster, communicate better, and operate more efficiently – which can create more capacity for employees to focus on higher-value work.
The firms that will benefit most from AI are not necessarily the ones spending the most money. The winners will approach AI strategically, focus on real business problems, involve employees in the process, and stay directly connected with the people utilizing it daily. This will instill much-needed discipline both immediately and moving forward.