Insurers slow to adopt AI despite seeing benefits – RDT

Challenges such as budgeting and legacy system integration are slowing the progress of artificial intelligence (AI) adoption among insurers.

That was according to RDT, which said that AI adoption remains in the early stages.

Data published yesterday (24 February 2025) showed that only 7% of insurers report extensive investments in AI-driven claims propositions, while 47% are still in the planning phase.

“Challenges such as budgeting and legacy system integration are slowing progress,” RDT said.

Benefits of AI

Despite this, most insurers believe that artificial intelligence (AI) and machine learning will significantly impact claims processes in the near future.

For example, the data showed that 85% of firms have confidence in AI’s role in claims management over the next five years.

And the top benefits insurers anticipate include faster claims processing (81%), lower costs (69%) and improved fraud detection (63%).

Joe O’Connor, deputy chief executive at RDT, said that clear investment strategies are needed for insurers to see the benefits of AI.

“AI’s potential to transform claims management is undeniable, but turning potential into reality requires clear investment strategies,” he said.

“Insurers see the benefits - from streamlining claims to improving fraud detection – but execution remains a hurdle.

“At RDT, we’re developing AI-powered solutions that integrate seamlessly, helping insurers unlock efficiencies, speed up claims handling and enhance customer satisfaction.”