Survey: Is AI replacing insurance agents?

Entrepreneurs are using AI tools for insurance research at rates comparable to insurance agents and peer networks, according to a new ERGO NEXT survey of small business owners.

Of those who have used AI, most trust the information they receive, signaling entrepreneurs are becoming more comfortable using digital tools to navigate complex business topics that have traditionally required human expertise.

However, the data does not point to a future where AI replaces advisors altogether.

Instead, entrepreneurs appear to be using AI as a complement to human expertise, combining the speed and accessibility of technology with the judgment and experience of trusted advisors.

Key findings

Our survey of 501 small business owners reveals:

• 36% of entrepreneurs have used an AI chatbot or search tool to explore business insurance options
• 94% of entrepreneurs who have used AI for business insurance advice trust the information provided
• 31% of entrepreneurs who have used AI for business insurance advice trust the information provided more than other sources

Continue reading to learn more about how small business owners are using AI and other sources to learn about and purchase business insurance.

AI is now part of the business insurance decision process

Entrepreneurs are increasingly using AI-powered tools to research coverage and understand their insurance needs.

Over a third of entrepreneurs (36%), have used an AI chatbot or search tool like ChatGPT or Claude to explore business insurance options. That’s surpassing 33% who have consulted other business owners and 31% who have consulted an insurance agent.

That parity is significant. It suggests that business owners are increasingly comfortable turning to AI, but they’re not abandoning human advisors. The future of AI in insurance is likely to be collaborative, with technology supporting, not replacing, professional guidance.

“Small business owners expect the same convenience and flexibility from insurance that they get from other business services,” says Effi Fuks-Leichtag, Chief Product Officer at ERGO NEXT. “But it’s notable that AI isn’t wildly outpacing human agents. Business owners often want a trusted expert in their corner, especially for complex situations.”

Entrepreneurs are increasingly mixing digital research with advice from trusted advisors when evaluating business insurance options.

With AI trust high, adoption could climb

As more business owners turn to AI tools for insurance research, confidence in the information these platforms provide is remarkably high. The survey findings suggest that trust is becoming a key driver of AI adoption in insurance-related decision-making.

Among entrepreneurs who have used AI for business insurance advice, 94% say they trust the information they receive. Nearly one-third (31%) trust AI tools more than other sources, while 63% trust them about the same. Only 7% say they trust AI less than traditional sources of information.

For many entrepreneurs, AI tools provide a fast, accessible way to learn about coverage options, understand industry terminology and prepare for conversations with agents or insurers.

Most small business owners who have used AI tools say they trust the information as much as, or more than, other sources they consult.

“The level of trust we see in AI reflects how useful these tools have become for researching insurance options and building confidence before making a purchase, or even before reaching out to an agent,” Fuks-Leichtag says. “As AI in insurance continues to evolve, business owners will have more opportunities to access information and evaluate coverage options on their own terms.”

“What’s emerging is a more informed insurance buyer. Entrepreneurs can educate themselves more efficiently than ever before, which helps them make decisions with greater confidence regardless of whether they ultimately purchase online, through an agent or through a combination of both.”

Insurance agents will play a more strategic role as AI plays a greater role in insurance advice

Today, 64% of small businesses that have insurance are underinsured.

In the coming years, growing AI adoption may help close that gap by making insurance information more accessible and easier to understand.

“Expect to see more small business owners using AI-powered tools to help them understand what scenarios their policy covers and explore options to cover unprotected risks,” Fuks-Leichtag says.

And as entrepreneurs gain access to more information and a clearer understanding of their options, agents have an opportunity to focus less on explaining the basics and more on providing tailored guidance.

“As AI becomes more common in the insurance journey, agents will play an even more strategic role,” Fuks-Leichtag says. “Their value will come from helping business owners interpret information, pressure-test assumptions and make coverage decisions that reflect the realities of their business.”

Make more confident insurance decisions with ERGO NEXT

The takeaway from this research is simple: The more entrepreneurs understand their risks and options, the more confident their decisions become. That’s the kind of buyer we built ERGO NEXT for.

We make it easy to explore your coverage options and find protection that fits your business whether you start with an AI tool, an agent or a quick look on your own.

Start a free quote with ERGO NEXT.

Methodology

ERGO NEXT Insurance surveyed 501 U.S. small business owners, founders and sole proprietors about their business risk profiles. The respondent pool consisted of 250 entrepreneurs in their first year of business and 251 entrepreneurs in their first 2-5 years of business. The survey was conducted April 29 – May 12, 2026.