Arthur J. Gallagher & Co. reported accelerating AI deployment across global businesses, though data protection and model errors continue to constrain confidence.
63% of businesses have fully operationalized or implemented AI in parts of their operations, up from 45% in 2025. Deployment centers on IT operations, client-facing functions and analytics.
Its third annual AI Adoption and Risk Survey, based on responses from 1,200 organizations, shows 82% report positive organizational impact from AI. Adoption is scaling fast.
Insurers are expanding the use of artificial intelligence across operations as confidence in its efficiency and accuracy grows. AI is increasingly viewed as a practical tool for reducing workloads and supporting staff functions, especially as advancements accelerate, Beinsure noted.
Despite regulatory concerns and uncertainty around implementation, several insurers and brokers are already deploying AI in production environments.
Financial expectations remain high. Eighty-three percent believe AI will drive future revenue growth. Ninety-three percent rate their understanding of AI risk as quite well or very well.
More than 50% of respondents cite skills gaps and recruitment strain. 46% have appointed an AI ethics officer to address governance and responsible use.
According to Beinsure analysts, formalizing oversight roles signals recognition that AI risk now intersects with compliance, reputation and operational resilience.
One of the new AI applications involves using AI agents to help brokers with a multitude of tasks, Beinsure noted.
Flow Specialty said in a statement that its platformless AI model can take meaningful work off brokers’ plates. These AI agents are trained on insurance materials such as specimens, quotes and carrier risk appetites, as well as the ongoing transaction of communication material and critical decision points.
Return on investment remains under evaluation. 63% of organizations actively measure ROI, estimating an average 28 months before realizing tangible returns. That lag shapes budgeting and capital allocation decisions.
Errors, hallucinations and misinformation rank as the top perceived threat at 57%. Legal and reputational exposure tied to misuse follows at 56%, with data protection and privacy risk close behind at 55%.
These concerns cluster around execution risk rather than strategy. AI works, but not flawlessly.
The survey also underscores the continued role of human oversight. Respondents emphasize accountability structures, governance controls and workforce training as stabilizing factors.
Steve Rhee, Global Chief Digital Officer at Gallagher, said the firm’s AI strategy focuses on empowering employees while centering customer outcomes. He noted sustained investment in data infrastructure, analytics capability and digital workforce development to equip teams for evolving operating conditions.
This survey complements what we’ve seen with our clients. Adoption is moving forward. Governance is trying to keep pace
Steve Rhee, Global CDO at Gallagher
Automation without guardrails introduces exposure. Governance without skills stalls progress.
