As we head into 2025, the rapid expansion of artificial intelligence (AI) has become impossible to ignore. Within the claims industry, 70% of insurance executives say they plan to roll out AI initiatives. According to Deloitte, the number of executives who have already adopted generative AI is even higher, at 76%. In any case, the outcome is clear – AI driven solutions will play a prominent role in the claims industry in 2025. So where will innovation take the industry next? 

AI trends in the insurance industry in 2025: 

Insurers rush to benefit from AI tools

The insurance, medical, and legal industries are all experiencing profound change – but it is insurance that is feeling the push towards AI. With industry-wide challenges putting pressure on margins, insurance leaders were forced to think on their feet – and many were rewarded when they added AI initiatives into the claims process. AI adoption may even have played a role in the P&C underwriting gains seen in the first half of 2024.

Given the pressure on profit margins, it’s no wonder insurers were quick to adapt technology even where they had been reluctant before. In 2025, we expect even more parts of the claims industry – underwriters, loss prevention, actuaries, claims adjusters, brokers, and more – to hop on board. 

Customer interactions are AI-driven

According to claims industry leaders, 95% of customer interactions in the insurance industry could be facilitated by AI in 2025. The growth in AI adoption isn’t necessarily through AI chatbots, either. These new use cases could deploy AI-powered triaging for claims, AI-powered document processing, or other supplementary tools to complement an otherwise human process – and this could be a very good thing. 

AI adopters in claims are seeing customer retention improve by as much as 14% compared to claims providers not using it at all. With the vast majority of the claims industry leaning into this technology in 2024, the coming year is poised to see even more use cases for AI tools. As insurers begin to optimize processes and offload manual tasks in 2025, we expect tools for customer triage – rather than a fully virtual claims experience – to be the next chapter for the claims industry that is quickly adopting AI. 

AI trends in the medical industry for 2025: 

Medical industry looks to capture AI opportunities - while addressing privacy concerns

As AI begins to take on a larger role at work, healthcare organizations are beginning to explore some of the ethical considerations of using AI. 

Setting out and following some AI best practices is crucial, especially in healthcare organizations. Due to the sensitive nature of medical records in healthcare, organizations in the medical industry may need to take added steps for de-identification of sensitive patient health information. Depending on their privacy protocols and margin for error, these companies may also decide to rely purely on extractive summaries from AI, owing to concerns around patient health data in an already sensitive medical field. 

Important to note that these privacy concerns do not seem to prevent medical industry players from using AI, with 15% of providers already establishing an AI strategy. With so many benefits to both healthcare professionals and patients, the medical industry seems to be willing to adapt AI practices to their needs, rather than rejecting them entirely. 

Medical industry expected to shore up cybersecurity

A recent report from the New York Department of Financial Services (NYDFS), warns companies to be wary of cybersecurity risks like deepfakes, supply chain weaknesses, or “AI hackers.” A likely priority for many companies adopting AI in 2025 will be stronger login protocols, regular tests for risk, quality control measures, and greater levels of human oversight when training models. Of course, a number of organizations are offering policies to mitigate this risk, and many experts suggest cyber insurance will be a major product offering in 2025.

AI trends in the legal industry for 2025

Building trust with regulatory bodies amid AI adoption

Regulatory bodies are stepping up AI oversight in the United States and abroad, which means greater accountability for the medical, legal, and insurance companies who use AI in claims. The bulk of these regulations focus on efforts to make AI more transparent, with clear reasoning behind automated claims decisions, regular audits to ensure compliance, and clear data handling standards. The legal industry will likely be adjudicating some of these AI regulations, in addition to adopting the technology themselves. 

Companies using AI to supplement human activities – such as medical summaries, medical timelines, or medical records processing – rather than fully automated AI processes, are likely already in a strong position to succeed, with or without regulatory measures for compliance. 

Looking ahead: the evolving role of AI in 2025 and beyond

According to PwC’s 2025 predictions for AI, AI will be central to the strategy of nearly half of global companies. The transformative potential of AI as a platform is undeniable, and insurance, legal, and medical businesses will need to carefully integrate it in a way that best meets their company’s needs. As AI takes over routine tasks in the coming year, employees are able to work on higher value activities requiring human expertise – and to utilize and supervise the AI tools that provide this collaboration, leading to a more optimized future in the insurance, legal and medical space.