’The insurance industry recognises AI’s potential, but the lack of in-house expertise remains a significant hurdle,’ says associate insurance analyst
A shortage of in-house expertise is the biggest barrier preventing insurers from adopting artificial intelligence (AI) technology, according to a GlobalData poll.
To bridge the knowledge gap, insurers have been encouraged to invest in AI education and training programs.
The firm’s poll, conducted across Verdict Media platforms, gathered responses from over 120 industry professionals.
The results of the research, published today (19 February 2025), showed that 24.4% identified a lack of internal expertise as the primary obstacle to AI adoption, followed by concerns over customer understanding (21.3%), scepticism regarding AI’s readiness (17.3%) and a lack of customer trust (13.4%).
Charlie Hutcherson, associate insurance analyst at GlobalData, said: “The insurance industry recognises AI’s potential, but the lack of in-house expertise remains a significant hurdle.
“Without the right talent, insurers will struggle to implement AI-driven solutions effectively. Companies that prioritise AI training and talent acquisition will gain a competitive edge as AI adoption continues to grow.”
AI knowledge gap
Upskilling employees through courses in AI, data analytics and machine learning can equip them with the skills needed for effective AI integration.
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For example, according to data published by Tata Consultancy Services (TCS) in June 2024, 83% of businesses felt AI was key to growth, while 67% said they would use it for innovation.
The study surveyed 160 senior executives from firms across banking, financial services and insurance.
However, in 2024, the London Market Group (LMG) said that the workforce across the city marketplace had only grown 2% per year between 2021 and 2023, below the premium growth average of around 7%.
Speaking exclusively to Insurance Times in January 2025, Ekine Akuiyibo, chief operating officer at technology firm Socotra, said that increased use of technology would demand new skills and approaches to attracting talent.
He continued: “The industry has to recognise there is the need for a new skills set.”
GlobalData noted that collaboration with universities and technology providers can further strengthen AI capabilities within the insurance sector.
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