By Insurance Desk | August 29, 2025
BOSTON — Artificial intelligence is gaining traction among insurance agents, but its integration into daily operations is far from uniform, according to a new study released by Liberty Mutual Insurance. The 2025 Independent Agents at Work Study, which polled over 1,200 independent agency leaders and staff members, highlights a growing interest in AI tools while underscoring persistent caution and skepticism, particularly among older employees.
The research indicates that more than half of agency employees (over 50%) expressed interest in incorporating AI into their workflows, with over one-third (more than 33%) already experimenting with or using AI in some capacity. This marks a noticeable shift from prior years, where attitudes were more neutral or hesitant. However, overall perceptions of AI have not undergone a dramatic transformation. Younger staff and agency principals show the most enthusiasm for AI-driven experimentation, viewing it as a means to enhance efficiency and client service. In contrast, older employees remain skeptical, often citing concerns over reliability, job impacts, and ethical implications.
“While AI is no longer a futuristic concept for many in the industry, its adoption is uneven, creating both opportunities and challenges for agencies,” said a Liberty Mutual spokesperson in a statement accompanying the report. The study emphasizes that this disparity could widen the performance gap between tech-savvy early adopters and more traditional firms, potentially affecting client retention and market competitiveness.
For agency leadership, the findings outline three key priorities to navigate this landscape effectively:
- Developing an AI Policy: Agencies should establish clear guidelines on AI usage, including ethical standards, data privacy, and integration protocols to build trust and ensure compliance.
- Training and Education: Investing in targeted training programs to upskill staff, particularly those less familiar with AI, to foster broader acceptance and reduce resistance.
- Strategic Implementation: Identifying high-impact use cases, such as automated quoting, personalized policy recommendations, and claims processing, to demonstrate quick wins and encourage wider uptake.
These priorities come at a time when the insurance sector is under pressure to modernize. AI tools promise to streamline operations, with potential benefits including faster response times, improved risk assessment, and enhanced customer personalization. For instance, AI can analyze vast datasets to predict client needs or detect fraud more accurately, freeing agents to focus on relationship-building and complex advisory roles. Carriers like Liberty Mutual are already providing AI-enabled systems to partners, but the study notes that alignment across distribution channels remains a hurdle.
The broader implications extend to the entire insurance ecosystem. As adoption varies, early adopters may gain a competitive edge in areas like client servicing and operational efficiency. Regulators are also taking note, with increased scrutiny on AI’s role in underwriting, pricing, and customer interactions. Issues such as transparency, data bias, and algorithmic fairness are expected to influence future policies, potentially slowing deployment in some regions.
Liberty Mutual, a global leader in property and casualty insurance, has been at the forefront of AI innovation for years. The company has invested heavily in AI through initiatives like its partnership with MIT’s Quest for Intelligence and internal tools for underwriting and claims processing. This latest study builds on previous research, such as the 2024 Agent-Customer Connection Study, which found only 6% of principals had implemented AI but 36% planned to within five years, with mixed sentiments on trust and opportunity. The 2025 edition reflects evolving attitudes amid rapid technological advancements, including generative AI.
Industry experts echo the study’s call for balanced adoption. “AI won’t replace agents, but agencies that ignore it risk falling behind,” noted a representative from Agent for the Future, a Liberty Mutual resource hub. On X, discussions around the report highlight optimism among tech enthusiasts, with users like @InsurTechInsider posting, “Finally, agents are warming up to AI—time to bridge the generational gap for real efficiency gains!” Others express caution, warning of potential job disruptions and the need for robust governance.
As the insurance industry navigates this AI inflection point, Liberty Mutual’s study serves as a benchmark for progress. With the potential to boost productivity by up to 40% by 2030, according to broader industry forecasts, agencies that address the uneven uptake head-on could position themselves for long-term success.
For more insights on AI in insurance and reactions from the industry, follow the conversation on X.