AI Acceleration Signals Big Opportunities for Insurers as Adoption Surges

Mary Meeker’s long-awaited 2025 AI trends report makes one thing clear: artificial intelligence is evolving faster than most realize, with usage and investment at unprecedented levels. With ChatGPT reaching one billion daily searches in under two years and global adoption spreading rapidly, the implications for the insurance industry are profound.

Costs to train AI models remain high, but the cost to use them—per token—has dropped by 99% in just two years. Meanwhile, major U.S. tech firms poured $212 billion into AI-focused capital expenditures in 2024, with continued investment into chips, data centers, and infrastructure. This ‘AI arms race’ is lowering usage barriers, enabling insurers to integrate AI tools at scale.

Meeker emphasizes that industries with proprietary data, reward ambiguity, and compliance complexity—hallmarks of insurance—are best positioned to benefit. From automating documentation to improving fraud detection, AI is already showing real-world ROI across sectors. For claims professionals, underwriters, and risk managers, the next few years will likely bring AI assistants that enhance speed, consistency, and decision quality.

While Meeker’s forecast is optimistic, her insights are supported by hard data and real deployments. For insurers, the time to test, scale, and institutionalize AI isn’t down the road—it’s now.