Two-Thirds of Independent Agents Plan to Increase AI Use This Year

New ACT report finds agencies keen to adopt AI but data and compliance concerns slow adoption.

ALEXANDRIA, VA, February 19, 2026—Two-thirds of independent insurance agencies plan to increase their use of artificial intelligence (AI) in the next 12 months, according to the “2026 Big ‘I’ Agents Council for Technology Tech Trends Report.” Despite growing interest, many agencies remain in the early stages of adoption, with nearly one-third reporting they are not using AI.

A key motivation for adopting AI is operational efficiency (60%) and staff productivity (52%). However, data privacy or compliance risks (24%) and inaccurate outputs (22%) topped the list of concerns.

“The findings of the report highlight a pivotal moment for independent agencies, with growing AI interest signaling momentum, long-term success hinges on clearer governance, stronger training and more integrated technology strategies,” says Kasey Connors, executive director of the Big “I” Agents Council for Technology (ACT).

“Across our research and conversations with technology leaders, the same priorities continue to surface: responsible AI use, stronger data management and security, and protecting the human element that defines the independent agency channel,” Connors said. “The agencies that strike the right balance between innovation and trust will have a clear advantage as AI adoption accelerates.”

Here are some of the key findings from the report:

Likelihood agencies will increase AI use in the next 12 months: 

• 38% – Very likely. 
• 30% – Somewhat likely. 
• 19% – Not likely. 

How agencies describe their AI usage: 

• 33% – Just experimenting. 
• 31% – Not currently using AI. 
• 22% – Using AI in limited areas. 
• 8% – AI is embedded in daily workflows. 

Most common AI tools in use:

• 45% – ChatGPT or other public LLMs. 
• 20% – Policy comparison tools. 
• 18% – AI-enabled marketing tools. 
• 13% – AI chatbots or virtual assistants. 
• 13% – Document/data extraction tools. 
• 30% – Not using any AI tools. 

Top concerns about AI:

• 24% – Data privacy or compliance risks. 
• 22% – Inaccurate outputs. 
• 17% – Losing the human touch. 
• 16% – Not knowing how to apply AI. 
• 11% – No major concerns. 

AI governance and training:

• 55% – Do not have a written AI use policy.  
• 23% – Have a policy in development. 
• 13% – Already have a formal AI policy. 

Expected benefits:

• 60% – Operational efficiency.
• 52% – Staff productivity.
• 21% – Customer experience.
• 17% – Revenue growth.
• 13% – Risk reduction/compliance.
• 23% – Not sure.

When asked their top tech-related challenge, agents said: 

• 22% – Keeping up with the pace of technology change. 
• 16% – Lack of automation and process. 
• 16% – Too many disconnected systems. 
• 9% – Changing customer expectations. 
• 8% – Rising compliance or cybersecurity risk. 
• 6% – Overwhelmed with vendor options.  

“AI is entering agencies at a time when many are already struggling with disconnected systems and limited automation. That complexity makes it harder to move from experimentation to meaningful impact,” Connors said. “What we hear consistently is that agents aren’t worried about the price of AI—they’re worried about the cost of getting it wrong. Data privacy, compliance, and accuracy have to be addressed before agencies are comfortable scaling AI use.”

The “2026 Big ‘I’ Agents Council for Technology Tech Trends Report” was based on a national survey conducted by the Big “I” via email targeting independent agency members of various sizes. Download a copy of the report here. And, to access a suite of resources designed to help independent insurance agents embrace technology to execute their unique business strategies, go to independentagent.com/technology.

To schedule an interview with Connors, reach out to Will Jones (william.jones@iiaba.net), Big “I” director of communications. 

Founded in 1896, the Independent Insurance Agents & Brokers of America (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations. Big “I” members are trusted insurance advisers who offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a choice of insurance companies.  

The Big “I” Agents Council for Technology (ACT) is a program of the Independent Insurance Agents & Brokers of America (the Big “I”) that provides a forum for agents, carriers, vendors, and thought leaders to collaborate on industry technology issues. ACT supports agencies’ business goals by providing valuable industry insights, tools and a collective voice for the future of the independent agency channel