1 in 3 Independent Agency Employees Use AI

• By: AnneMarie McPherson Spears
• September 3, 2025

Attitudes about artificial intelligence (AI) have begun to shift in independent insurance agencies, according to the “2025 Independent Agents at Work Study” from Liberty Mutual. While many agents still distrust AI and even view it as a threat, interest in using the developing tool is growing among younger agency employees and principals.

More than half—57%—of agency employees are interested in using AI for work and 1 in 3 agency employees report using AI for work in the past year. Millennial and Generation Z employees are the most likely to use AI, with 16% stating that they use AI at work on a weekly basis. Another 8% of younger generations say they use AI daily in their jobs.

Millennial and Gen Z employees’ workplace utilization of AI follows their personal usage closely—18% say they use AI outside of work weekly, and 10% say they use it daily.

Despite AI becoming increasingly integrated into independent insurance agencies, only 12% of agencies have a well-defined policy on the use of AI. The lack of clear guidance leaves room for unintended consequences, Liberty Mutual pointed out.

“Even if you haven’t officially implemented AI tools in your agency, your staff may be using AI tools to help with their jobs,” the report said. “Your agency needs an AI policy to help reduce potential risks and safeguard sensitive client information.”

Interest has also grown among agency principals, with 67% of agency principals interested in using AI in the agency compared to 49% of staff. Principals are also more likely to view AI as an opportunity than a threat, at 41% compared to 30% of staff. And 54% of principals want more tools and services at their agency to have built-in AI capabilities, compared to 35% of staff.

This mismatch in enthusiasm means agency leaders should be intentional about gaining staff’s support before implementing AI tools. “Reassure your staff that AI won’t replace them,” the report said. “Make sure to take the time to explain how you’re thinking about using AI in your agency and how AI-backed tools can help them.” 

AnneMarie McPherson Spears is IA news editor.