82% of insurance leaders are prioritising AI adoption to enhance business performance, however many struggle to successfully deploy AI solutions at scale, according to new research.
Roots‘ inaugural State of AI Adoption in Insurance 2025 report surveyed 242 insurance executives, highlighting the growing importance of artificial intelligence (AI) in transforming insurance operations while also underscoring the hurdles insurers face in deployment.
The survey reveals that 82% of insurance leaders consider AI a top business priority, aiming to enhance financial and operational performance.
Nearly 90% of respondents have a positive outlook on AI, with 67% strongly in favour of its implementation. Despite this enthusiasm, only 22% of insurers have successfully deployed AI solutions at scale.
The report identifies key obstacles hindering AI implementation in the insurance sector. Among them, skills and resource constraints top the list, with 52% of respondents citing a lack of qualified talent as a major barrier.
Data challenges (40%) and regulatory concerns (36%) also contribute to the slow pace of AI adoption.
The survey also highlights how AI priorities differ across departments within insurance companies:
- Claims teams focus on improving claims processing efficiency (72%), reducing cycle times (64%), and enhancing client satisfaction (45%).
- Underwriting teams prioritise increasing premium growth (75%), accelerating quote speed (53%), and reducing loss ratios (43%).
- IT operations teams are working to scale AI across the business (65%), cut operational costs (48%), and modernise technology infrastructure (45%).
Key success factors for AI implementation
Insurance executives outlined four essential elements for successful AI initiatives:
- AI accuracy (71%)
- AI models trained specifically for insurance (45%)
- Speed to return on investment (ROI) (43%)
- Speed to production (42%)
The survey found that insurers primarily use AI to automate repetitive tasks and address data challenges. Popular AI use cases include data and document processing (64%) and process automation (60%).
Roots CEO and co-founder Chaz Perera emphasised the strategic importance of AI in insurance, stating, “Insurance executives recognise AI’s transformative potential, and our survey shows they are prioritising AI to enhance operational efficiency, lower costs and boost customer satisfaction. Underwriting, claims management and IT leaders are committed to making AI a pillar of their future success, despite challenges in adoption and deployment. The complexity of implementing AI underscores the need for strategic partnerships, external expertise and insurance-specific solutions to help guide insurers on accelerating the path to ROI.”
Alongside releasing the survey, Roots announced its rebranding from Roots Automation to Roots, a move designed to reflect its growing focus on advanced AI solutions. The company also launched a new logo and website.
The State of AI Adoption in Insurance 2025 survey included responses from 242 insurance executives, business line owners, and IT professionals, with 95% of participants based in the US.
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