AI isn’t replacing agents, but it’s changing their value

A growing number of consumers are turning to AI tools to learn about insurance, compare coverage, and shop for policies, according to a recent study.

Nearly three in 10 auto and home insurance customers have already used AI for insurance-related tasks, the JD Power study found. This trend prompts a key question for agents: how can they maintain their value when customers can gather insurance information from a chatbot?

“Some of these AI tools have been becoming more and more a part of that decision-making process from the very beginning points of the process,” said Tony Soloman, director of insurance intelligence at JD Power.

The study found that 29% of auto and home insurance customers have used AI to research coverage, shop for insurance, service their accounts or better understand their policies. Among those who used AI to research products and coverage, 37% said they changed their policy based on what they learned. Another 42% said they purchased a policy after using AI-assisted shopping tools.

AI is becoming part of the decision-making process

Customers are using both insurer-provided tools and third-party AI platforms when researching coverage and shopping for policies, according to the study.

The findings suggest customers are using AI for more than simple questions. According to JD Power, half of customers who used insurer-provided AI tools wanted recommendations on coverage amounts and deductibles. Another 46% used the tools to help understand insurance terminology.

Soloman said customers are using AI for everything from background research and understanding coverage needs to comparing options and shopping for policies.

Opinions are mixed on whether or not AI is replacing traditional research.

“I think it’s a little bit of both,” Soloman said, when asked whether customers are replacing traditional sources of information or simply adding AI as another research tool.

“Some of them are using it to supplement some traditional methods,” he said. “Others we’re seeing are starting to rely heavily on the AI. It’s like the primary way that they’re going about it.”

In some cases, AI is replacing activities that once would have involved a Google search or a call to a customer service center.

“It’s become a more simplified approach to sort of answer these questions that would have been answered through maybe more complicated or more involved means,” Soloman said.

The findings suggest AI is beginning to take over some of the education and research that traditionally happened before a customer made a buying decision.

Customers want humans when the stakes get higher

The study also points to limits in how far customers are willing to rely on AI.

The study found customers were least comfortable using AI for claims and policy changes. Soloman said those tasks carry greater consequences if something goes wrong.

“If the AI messes up their claim or if the AI messes up their policy, it’s sort of a bigger mess that I now have to go untangle,” he said.

That caution showed up elsewhere in the study as well. Soloman pointed to what he called “abandonment,” where customers begin an interaction with AI but ultimately contact a human representative anyway.

Regulators are watching closely

As AI takes on a larger role in insurance decisions, regulators are paying closer attention.

The National Association of Insurance Commissioners notes that AI is being used throughout the insurance industry, including underwriting, claims handling, policy service and fraud detection. At the same time, the organization warns that AI can pose risks involving inaccuracies, unfair discrimination and a lack of transparency. Insurers remain responsible for decisions supported by AI systems and are expected to maintain oversight and controls to protect consumers.

For now, the JD Power findings suggest AI is becoming an important part of how customers research and shop for insurance.

The NAIC adopted principles for AI use in December 2025. But the principles are not prescriptive, and consumer advocates continue to call for greater regulation of the technology.

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