Survey Shows Declining Consumer Confidence in AI for P/C Insurance

The number of Americans that think it’s a good idea for property/casualty insurers to leverage artificial intelligence is headed down, with a growing number of people who say they would be less likely to buy a policy with an insurer that uses AI, a new survey shows.

According to a survey conducted by Insurity, a provider of cloud-based services for the insurance industry, the number of people who think it’s a good idea for P/C insurers to leverage AI is down 9% since last year.

The survey also shows 44% of consumers are less likely to purchase a policy from an insurer that uses AI, up slightly from 42% in last year’s survey.

The survey appears to point at a decrease in trust about how the industry is using AI, including a a growing concern about the transparency of AI systems.

The report shows 20% of survey respondents view AI as beneficial for insurance companies, down from 29% in 2024.

The decline in a positive reception toward AI was apparent in the survey from all generations, except Generation Z. Support for AI fell among Millennials, from 41% in 2024 to 26% in 2025. Gen X support dropped 34% to 20% year-to-year. Support for AI use from Baby Boomers fell to 10% from 13% the prior year.

Reported consumer experiences varied, with 47% of consumers reporting good interactions in 2025, a sharp drop from 63% in 2024.

This survey was conducted online in January with more than 1,000 adult participants randomly selected across the U.S. Respondents were asked a series of 19 questions, ranging from multiple-choice to scale-based, to gauge their opinions on AI in P/C insurance.