Insurers Look to Build Trust and Value in AI Adoption

New research finds the insurance industry at an AI inflection point: adoption is accelerating, but businesses must address questions around governance and data maturity.

Jan. 29, 2026 at 9:07am

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A new SAS report shows that as the insurance industry enters a year in which many expect AI to produce a spike in business value, insurers face an inflection point: AI adoption is accelerating, but businesses must address questions around governance and data maturity before they can realize its full potential. The report reveals that the insurance industry is taking a cautious, deliberate approach to adopting AI, with modest overall AI maturity, a conservative investment profile, and trust gaps.

Why it matters

The insurance business is built on trust, and AI cannot work without trust. As insurers look to use AI to drive growth through improved customer experience and expanded market share, they must address challenges around data governance, data centralization, and talent shortages to ensure the responsible and trustworthy deployment of AI.

The details

The report found that only 7% of insurers consider themselves 'transformative' in terms of AI and data infrastructure maturity, and 14% remain siloed in their data infrastructure. About 8% of insurers expect to increase their AI spending by at least 20% in the next year, with nearly 60% saying they expect an increase of between 4% and 20%. Over 40% of insurers fall into the categories of either underutilization (low trust in reliable systems) or overreliance (high trust in unproven systems).

  • The Data and AI Impact Report: The Trust Imperative was commissioned by SAS and published in January 2026.

The players

SAS

A software company that provides analytics and business intelligence solutions.

Amazon Web Services (AWS)

A cloud computing platform that provides a wide range of services, including data and AI services, to businesses.

Economist Impact

A research and analysis firm that is part of The Economist Group.

Kathy Lange

Research Director of the AI and Automation Practice at IDC.

Franklin Manchester

Global Insurance Strategic Advisor at SAS.

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What they’re saying

“Our research shows the insurance industry in line with other sectors – if not slightly ahead of them – in terms of delivering trustworthy AI. However, when it comes to the level of maturity of AI and data infrastructures, insurers lag behind.”

— Kathy Lange, Research Director of the AI and Automation Practice at IDC

“AI is an imperative for businesses, but it's not a magic pill. For AI to generate value throughout the enterprise, it needs to be supported by talented people and fueled with robust, connected data. The insurers who can infuse AI into their existing operations – and who establish the governance necessary to deliver safe and responsible AI at scale – will have a competitive advantage for growth, innovation and creating value for their customers.”

— Franklin Manchester, Global Insurance Strategic Advisor at SAS

What’s next

The live webinar on February 4, 2026, will offer insights into the trends that will shape the insurance industry over the next year and beyond, along with guidance for how to build trust, increase profitability, and improve performance.

The takeaway

As insurers look to leverage AI to drive growth and innovation, they must prioritize building trust in the technology through robust data governance, data infrastructure, and talent development. Those who can successfully navigate this inflection point will be well-positioned to create value for their customers and gain a competitive advantage.