Why Insurance Claims Adjusters Are Among the Most AI-Skeptical Workers in the U.S.
Artificial intelligence is facing strong resistance in the insurance industry, particularly among insurance claims adjusters. Reviews posted on Glassdoor show that many adjusters believe companies are relying too heavily on AI and asking employees to stop using their own judgment.
One Glassdoor review described the push toward AI as “completely counterproductive,” while another urged companies to “stop forcing AI on everyone.” A third reviewer criticized the AI applications used by their employer, calling them ineffective and unreliable.
These comments came from insurance claims adjusters—not journalists, teachers, or technology workers. A recent Glassdoor study found that claims adjusters who mention AI in workplace reviews express negative opinions about the technology approximately 98% of the time. That makes them the most AI-critical profession in the U.S. workforce, according to the study.
Why Claims Adjusters Are Frustrated With AI
According to Glassdoor, insurance adjusters frequently complain that “AI-obsessed leaders” are introducing error-prone systems that affect both employees and policyholders. When artificial intelligence makes mistakes in insurance claims, adjusters are often responsible for correcting the problem and dealing with frustrated customers.
Ahmad Jackson experienced this firsthand. About a year ago, he worked in the claims department of a major insurance company that introduced AI to handle first notice of loss reports. This process involves opening a claim and collecting information after a policyholder reports an accident or other incident.
The company expected AI to simplify routine claims and direct more complicated cases to human employees. Instead, Jackson and other adjusters encountered a surge of incorrectly classified claims that had to be manually rerouted to the appropriate departments.
Jackson also discovered an AI-generated error while reviewing an insurance claim summary. After the incorrect information was unintentionally shared with claimants and their attorneys, he faced their anger directly.
He eventually left the company and moved to another insurance provider.
“AI gets things wrong,” Jackson told WIRED. “And the adjusters have a lot more work to do.”
Insurance Employees Report AI Fatigue
Some insurance professionals say they are exhausted by the constant push to adopt artificial intelligence.
“AI fatigue is happening,” said Jeffrey Conrad, a claims manager in Mobile, Alabama. “We’re pretty exhausted in that we’re having so much AI shoved down our throats.”
Chris Martin, a senior economist at Glassdoor, said he was surprised by the level of frustration among claims adjusters. After reviewing the data, he concluded that the profession is undergoing a major transformation—and potentially a significant reduction in employment.
Insurance Claims Jobs Are Declining
The U.S. Bureau of Labor Statistics reported in 2024 that the number of insurance claims adjuster jobs could decline by approximately 18,900 positions, or 5%, over the following decade. BLS data also showed that employment in the sector fell by 21% between May 2025 and May 2026.
Glassdoor reported that entry-level insurance claims positions have declined by 50% since 2025. The Bureau of Labor Statistics identified technology as one of the primary factors behind the decrease.
At the same time, insurance technology startups have raised millions of dollars by promising to reinvent the insurance industry. Established insurance companies are also expanding their use of AI to process a growing number of claims.
How AI Is Changing the Insurance Claims Process
For policyholders, AI-powered insurance services may mean communicating with a chatbot instead of a human representative when filing a claim. Rather than sending an adjuster to inspect a damaged property, an AI system may analyze photos and videos to estimate repair costs.
Artificial intelligence can also summarize hundreds of pages of medical records, identify potentially relevant information, and analyze documents submitted by policyholders. Some systems can review photos, videos, receipts, and other files before calculating and issuing payments within seconds.
However, these systems can also create additional work when they misclassify claims, misunderstand documents, or generate inaccurate summaries. In those situations, human adjusters must investigate the error, correct the claim, and explain the problem to customers.
Lemonade’s AI-First Insurance Strategy
Lemonade has been one of the most visible examples of an AI-focused insurance company. Since its founding in 2015, the insurer has promoted the use of “bots and machine learning” as a way to replace traditional insurance bureaucracy.
By the end of last year, Lemonade said its AI chatbot and automated claims systems had processed 96% of initial claim reports and approximately 55% of all claims.
Traditional insurance companies, including State Farm, emphasize that insurance still requires a combination of digital tools and human expertise. Despite that approach, some claims adjusters remain concerned that the AI systems they are helping train could eventually replace many of their jobs.
The Future of AI in Insurance
Artificial intelligence is likely to continue reshaping insurance claims processing. It may reduce administrative work, speed up payments, and make it easier for customers to submit documentation. But the technology’s limitations are becoming increasingly clear to the employees responsible for correcting its mistakes.
For many insurance claims adjusters, the issue is not simply whether AI can process claims. The larger concern is whether insurers are deploying the technology responsibly—and whether human judgment will remain central when customers face complicated, high-stakes situations.
Source: www.wired.com