Roughly three in ten auto and home insurance policyholders have turned to artificial intelligence for activities ranging from research to comparing and purchasing coverage, according to JD Power's first-ever U.S. AI Insurance Experience Study, published on September 1, 2026. Research data from the study show that AI-powered tools — whether provided by insurers or sourced from outside vendors — are already shaping how consumers shop for and manage coverage, with four in ten AI-assisted buyers completing a new policy purchase.

Drawing on nearly 8,400 consumer ratings across 24 insurance providers and eight external AI platforms, the research identified a number of distinct application areas. Policyholders are turning to AI tools to explore options, manage their accounts, gain clarity on what their plans cover, and obtain pricing estimates. Of those who used AI tools for researching products or coverage options, 37% went on to adjust their policy as a result.

The choice of source varies according to the nature of the task. When conducting research, approximately a third of policyholders turn to digital tools offered by their insurer, while a similar proportion rely on independent online platforms. Among those shopping for quotes, roughly a quarter rely on AI tools provided by insurers, while about one in five turn to independent third-party platforms.

Account servicing data present a different pattern. Some 27% of policyholders turn to their insurer's own tools for these functions, while just 8% opt for external platforms.

According to JD Power's insurance intelligence director Tony Soloman, the findings reflect strain on both dimensions. Policyholders are increasingly turning to third-party AI tools and chatbot platforms to evaluate and contrast coverage options, which means how large language models process and interpret insurer content has become a growing factor for the industry to address. Third-party platforms operate independently of insurers when deciding how to display or present coverage details.

According to Eric McCready, director of digital solutions at JD Power, AI tools tailored to the insurance sector remain at a relatively nascent stage of development. Policyholders are already turning to insurer-provided tools, cross-referencing those outputs with independent platforms, and basing coverage decisions on the data they obtain. Patterns of use are taking shape even as the underlying technology continues to develop.

Consumer attitudes toward AI tend to differ depending on the specific application involved. Insurance holders tend to report the greatest comfort with AI-driven tools when handling billing processes and premium calculations. User satisfaction tends to decline when automated systems are applied to areas such as policy adjustments, claims handling, or support enquiries.

Demographic factors such as age are also relevant. Younger consumers, particularly those in the Gen Z and millennial age brackets, tend to place greater confidence in AI-driven tools for account management and research functions.

Abstention continues to outpace adoption as the predominant pattern of behaviour. According to the research, roughly seven in ten consumers had not turned to AI when evaluating products and coverage, three quarters had not employed it to obtain quotes, and nearly nine in ten had not relied on it when filing claims. Seven in ten people have yet to use the platform for managing their accounts. The most frequently reported barriers to adoption were unfamiliarity with the technology, entrenched habits, and a general distrust of AI-generated outputs.

At 29%, adoption of these tools remains partial, with scope for further uptake as technology matures and user confidence builds. Among AI-assisted researchers, 37% adjusted their policy positions, while 42% of AI-assisted shoppers completed a purchase, pointing to a role for these tools that extends beyond delivering information into driving concrete decisions.

The study noted that insurance companies track both their direct AI interactions with customers and how their brand is portrayed within external platforms, given that consumers routinely compare the two experiences. For those overseeing product development, underwriting, and claims operations, the study observed a divergence between ease of adoption at the billing stage and resistance at the claims stage, identifying interface design and policyholder education as areas where broader uptake could be influenced.