Two-thirds of independent agencies plan to increase AI use this year

AI adoption is accelerating among independent insurance agencies.

According to the 2026 Big ‘I’ Agents Council for Technology Tech Trends Report, two-thirds of independent agencies plan to increase their AI usage in the next 12 months.

Current adoption levels, however, vary widely—33% are just experimenting, 22% are using AI in limited areas, 8% are embedding it in daily workflows, and 31% are not using it at all.

Agencies that are looking to ramp up their AI efforts are primarily motivated by operational efficiency and staff productivity. At the same time, data privacy, compliance risks, and inaccurate outputs remain leading concerns.

If you’re an agent considering AI—or looking to expand its role— educate yourself on how others are currently using this technology and how you can implement it in a responsible, strategic manner, the report recommends.

How AI is reshaping agency workflows

As of late, independent agents are moving from experimentation to targeted workflow use.

“Adoption is still uneven as we have a wide array of agency sizes, from both a staff and revenue perspective. Most independent agencies are still in the early to middle stages of their AI journey, and they’re starting where it makes the most operational sense,” said Kasey Connors, executive director of the Big “I” Agents Council for Technology (ACT).

AI is primarily being used to support high-volume, repeatable tasks like drafting client emails, summarizing calls, generating marketing content, and assisting with certain back-office review processes.

Some agencies are even using it to look up values of vehicles from an underwriting perspective. In most cases, they begin in lower-risk areas where time savings are immediate but human oversight is still essential.

“We’re also seeing growing interest in AI voice assistants, smarter policy review, and workflow automation embedded directly into core systems. Broadly speaking, agencies are taking a pragmatic approach: start small, learn fast, and expand where it drives real efficiency,” Connors explained.

What tools are being used?

Most agents are using a combination of general LLM tools, such as ChatGPT and Microsoft CoPilot, AI embedded in agency platforms, and emerging insurtech solutions.

“We’re seeing significant momentum from AI being embedded directly into agency management systems and core workflows. ACT is neutral to partners but has a broad partner ecosystem in this space, including platforms like Applied Systems, Vertafore, Zywave, Amplo, and HawkSoft that are increasingly incorporating AI into everyday agency operations,” Connors said.

Beyond core systems, agencies are turning to specialized solutions across the customer lifecycle — from data intake tools like Canopy Connect and service providers such as Patra, to digital distribution platforms like Bolt and emerging AI workflow players including CARA, Fulcrum, Gail, ReFocus AI and Xanatek’s Dyad.

On the marketing and customer engagement side, they’re leveraging platforms like Experience.com and Total Expert for smarter search, reputation, and lifecycle engagement, along with infrastructure players like AgentSync that help ensure cleaner, more reliable data flows, as well as Agency Revolution for marketing specifically.

The effects of AI usage

“When done well, the impact of AI is largely positive. It helps agencies become faster, more proactive, and more responsive," Connors explained.

According to Connors, most independent agents are being very intentional about using AI to enhance—not replace—the trusted advisor relationship that defines their value.

As long as it’s implemented thoughtfully, this technology can remove friction behind the scenes, giving agents additional time to focus on advice, coverage guidance and relationship building.

From the client perspective, it offers personalized outreach and expanded availability through after-hours support, chat, or voice tools.

Tips for agents

If you want to use AI to support your clients, Connors recommends you think about workflow pains rather than the tools themselves.

“Look for tasks that are repetitive, manual and time-consuming. Email drafting, call summaries, marketing content and document review are often strong early wins. Pilot one use case, measure the impact and then expand thoughtfully,” Connors said.

It’s also critical to invest early in data quality, governance, and team training.

AI will only perform as well as the data behind it, and agencies that set clear usage guidelines and keep a human in the loop, especially for coverage decisions, are seeing the strongest results.

“Most importantly, treat this as an operational evolution, not just a technology experiment,” Connors added.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Anna Baluch is a finance reporter and writer with more than a decade of experience. Contact her at [email protected]