Artificial intelligence (AI) is no longer a theoretical “future trend” for insurance agents. It’s quickly becoming part of agency technology tools, everyday workflows, and customer expectations.

Many of the agents I talk to are still in the experimental phase of AI use, but things are shifting. In the Liberty Mutual 2025 Independent Agents at Work Study, 1 in 3 agency employees said they had used AI for work in the last year, and more than half were interested in using AI for work.

Over time, AI will move from being a novelty to being ubiquitous, following the same path as technology such as computers or the internet – things that have become so essential to work that they’re now assumed.

Here are some predictions for how AI will become more integrated into agency operations and what it means for agency leaders and employees:

1. Conversational AI will start to reduce basic service friction

AI voice tools are already starting to replace the “press or say ‘1’” style phone trees that have frustrated customers for decades. Conversational AI can answer basic questions, understand intent, and route complex questions and exceptions to humans.

We’re already seeing this yield results for agencies. RIGHTSURE, INC, one of our 2025 Agent for the Future Award winners, used their AI-powered communications system to answer more than 100,000 inbound calls last year.

I predict that personalized chat and voice-enabled AI will rapidly become the primary interface for routine interactions. Phone systems will remain, but traditional menu-based interactive voice response (IVR) and FAQ-style text chat will become outdated.

2. AI-driven personalization will become the new standard for agency marketing

For years, “personalized marketing” has meant using a first name in an email and segmenting by broad categories. AI changes the definition entirely.

A growing number of marketing automation vendors are offering AI-enabled marketing that can draw on information agencies have on a client’s interests, behaviors, and preferences and use that information to craft individualized messages.

Marketing automation for all channels will evolve beyond simple drip campaigns into outreach that is context-aware, responsive to life events, and consistent across communication channels. As customers get used to marketing messages that feel, at times, oddly personal, agencies that keep sending one-size-fits-all messaging will see diminishing returns. This won’t be because they’re doing “bad marketing,” but because relevance will become the baseline expectation.

3. Agencies will formalize AI usage, governance, and accountability

Currently, many agencies are still playing it pretty fast and loose with how employees use AI. In the 2025 Independent Agents at Work Study, only 12% of respondents said their agency had a well-defined policy on the use of AI. That’s a problem since AI brings risks around data privacy, E&O exposures, and compliance.

This year, I expect to see AI guidelines start to become part of agency standard operating procedures. They will take their place alongside policies governing technology transitions that impacted workplace norms in the past – things like social media usage, bring your own device, and remote work.