A new “AI in Insurance Report” identifies the generational differences when it comes to artificial intelligence acceptance, according to cloud-based software provider Insurity.

The findings of the survey of more than 1,000 randomly selected U.S. adults indicates that millennials continue to lead in AI comfort and trust, while Gen Z represents a rising market for AI-driven insurance solutions.

Millennials are the most comfortable generation when interacting with AI in insurance, with 32 percent expressing ease with the technology, survey results showed.

They also lead in trusting AI’s ability to predict severe weather risks to their property at 30 percent, while Gen Z trails at 23 percent.

Baby boomers surprisingly show the highest comfort level at 51 percent when it comes to relying on AI’s role in proactively monitoring severe weather, followed by Gen X and millennials at 45 percent.

This indicates that older generations might be more receptive to AI in certain scenarios that offer clear and tangible advantages, such as real-time risk monitoring and alerts.

Gen Z is the most likely generation, at 16 percent, to purchase policies from insurers that use AI, indicating a growing market for AI-powered products.

Millennials and Gen Z comprise an expanding segment of the insurance market, and their comfort with AI presents significant opportunities for insurers to introduce innovative, AI-driven tools to attract and retain these customers, Insurity said.

“Understanding these generational differences is crucial for insurers aiming to enhance their AI strategies,” said Sylvester Mathis, chief insurance and chief revenue officer at Insurity. “Millennials have already embraced AI as part of their insurance experience, making them an ideal audience for advanced AI-driven solutions. Meanwhile, Gen Z offers insurers a chance to engage a digitally native generation that is very receptive to AI-powered services, even if their trust levels are still developing. Insurers who tailor their messaging and demonstrate AI’s real-world benefits will be well-positioned to drive adoption and enhance customer relationships across all demographics.”

As AI continues to reshape the insurance landscape, the findings highlight the significance of generational targeting in AI-driven innovation, the software provider said.

By understanding the views of various age groups regarding AI adoption, insurers can refine their approach, provide more personalized experiences and enhance trust in AI-powered products, Insurity added.

This survey was conducted online in January 2025. Respondents were asked a series of 19 questions, ranging from multiple-choice to scale-based, to gauge their opinions on AI in P&C insurance. Data analysis was performed to identify key patterns and insights.