Most independent insurance agencies are gearing up to use more artificial intelligence (AI) in the coming year, signaling a shift in how these businesses operate. According to the recent "2026 Big ‘I’ Agents Council for Technology Tech Trends Report," about two-thirds of independent agents plan to boost their AI use, with 38% very likely and 30% somewhat likely to do so.
The main reasons agents want to expand AI include improving how efficiently they operate and helping their staff be more productive. Agencies face growing customer expectations, disconnected workflows, and a flood of AI tools becoming part of their everyday platforms.
Kasey Connors, executive director of the Big “I” Agents Council for Technology, says the rise in AI use also comes from more available options and agents seeing their peers benefit from AI. Still, challenges remain. Many agencies juggle messy data and systems that don’t always work well together. Connors points out that if data is not clean, AI cannot be used to its full potential. She also notes that the fear of making costly mistakes with AI is a real concern for many agents.
The report shows that AI is moving beyond just experimentation. In past years, AI felt like something distant, but now it is becoming tailored and useful for agencies. However, not every agency is onboard yet. Thirty-one percent aren’t using AI at all, while 33% are still trying it out, 22% use it in a few areas, and only 8% have AI fully embedded in daily work.
Agencies face hurdles like technology overload, too many disconnected systems, and a lack of automation, which make adoption tricky. Risk worries also slow progress. Data privacy, compliance issues, mistakes by AI, and concerns about losing the personal touch with clients top the list of agent fears. More than half of agencies don’t have a written AI use policy, highlighting the early stage of AI governance in the sector.
Connors emphasizes the importance of keeping the human side alive while using AI. She suggests using AI for tasks that don’t need human interaction, such as gathering information before client calls or automating routine work, so agents can focus on building relationships. This balance helps agents be more responsive and proactive.
For smaller agencies especially, Connors advises against trying to adopt every new technology at once. Instead, she recommends stepping back, identifying specific problem areas, and solving them one at a time. This approach helps agencies grow their AI use steadily without feeling overwhelmed.
As AI becomes a bigger part of how agencies work, it could become a key competitive advantage. Agents who use AI smartly may stand out by being faster and more helpful to clients. But success will depend on careful choices, clean data, and a clear plan to use AI for the right tasks.