Stay up to date with the latest AI developments that are most relevant to insurance professionals this month. Explore the articles below for a summary of key trends, innovations, and practical applications of AI both within and outside the insurance industry.
Latest Articles as of May 1
News: An AI agent market map
The root of it: This AI Agent Market Map reveals rapid growth in enterprise AI agents and copilots, with over 170 startups across 26 categories raising $3.8B in 2024. While tools are advancing from basic copilots to more autonomous “digital coworkers,” most still operate within constraints due to reliability and reasoning limits. General-purpose, no-code platforms lead early-stage development, empowering businesses to build agents without coding. The market is also shifting toward greater specialization, integrated tech stacks, and clearer value realization.
News: CIOs are having a “get-real” moment about building AI solutions in-house
The root of it: In late 2023, Gartner reported that approximately half of all companies were developing AI tools in-house. A year later, that number plummeted to roughly 20%. Even as optimism in AI remains high, CIOs are forced to reckon with the lack of expertise and budget to bring solutions into production.
News: Hype blurs reality as CIOs race to implement AI agents
The root of it: With agentic AI moving to supplant generative AI at the top of the technology hype cycle, tech leaders have a major problem: the absence of a standard definition for what an AI agent actually is. In this article, CIOs share their views on defining the tech and provide guidance on how to avoid falling for what’s now being called “agent-washing.”
News: Insurance survey findings drivers are distracted, stressed, and open to tech solutions
The root of it: The 2025 Nationwide Driving Behaviors Report shows a rise in risky driving among both consumers and commercial drivers. Gen Z drivers report more impatience and device use, while commercial drivers face increased distraction from staffing shortages and work demands. Despite this, 86% rate their own driving highly, though only 23% say the same of others, revealing a major perception gap.
News: Policyholders more receptive to AI when its benefits are clear
The root of it: A recent survey shows that 25 percent of U.S. adults view AI use by insurers negatively, while more than half (55 percent) are indifferent. The silver lining? Customer acceptance increases significantly when AI delivers tangible benefits (e.g., faster and more accurate claims processing, customized quotes, and enhanced customer service).
News: AI integration in insurance demands robust governance and regulatory compliance
The root of it: AI is streamlining insurance processes like underwriting and claims, but it's raising regulatory concerns. Insurance regulatory legal experts (including the one-time general counsel at Lemonade) offer insights and guidance to help chart a course through the rapidly evolving regulatory landscape of the use of AI across insurance operations. States are responding with new laws and guidance to ensure responsible AI use. Insurers must maintain strong governance and can’t offload compliance duties to tech vendors.
News: Small Language Models (SLM) and agentic AI need smarter governance for scalable insurance innovation
The root of it: Insurers are embracing specialized small language models (SLMs) and agentic AI to boost efficiency, accuracy, and autonomy. An AI governance expert delivers guidance to help insurers balance innovation with risk to accelerate deployment, ensure compliance, and deliver measurable value across operations.
News: Keeping humanity at the center of tech-empowered insurance teams
The root of it: Effectively implemented, AI is a force multiplier that lets human experts do their best work. However, the article explores how insurance companies risk losing human-centric culture as they scale and adopt advanced technologies. Rapid growth and tech integration can reduce empathy and interpersonal connection within organizations. To counter this, companies are encouraged to prioritize team-building and preserve core human values alongside digital transformation.
News: AI-generated radio DJ enthralls unaware audiences for months
The root of it: An AI DJ entertained Australian radio listeners for four straight months with no one the wiser. Opinions on this were mixed. A voice actors’ union spokesperson criticized the station’s lack of transparency. But we’re guessing autonomous vehicles are excited about having their own drive-time radio programming to listen to.
News: The wit and wisdom of AI hallucinations? (Yes, you read that correctly)
The root of it: Remember that old nugget, “never put a tiger in a Michelin star kitchen?” How about “always pack extra batteries for your milkshake”? If you do, you might be hallucinating, too, because generative AI just made it all up. Read on for more AI-generated idioms to drop into your next presentation.
Read our 2025 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from more than 240 insurance executives.