AI, the Future, and Thoughts for Insurance Companies and Accountants

AI, the Future, and Thoughts for Insurance Companies and Accountants

October 27, 2025

Artificial intelligence (AI) has quickly moved from buzzword to business essential. For many in insurance and accounting roles, that shift is both exciting and unsettling. Our goal when exploring AI’s role in our profession should be to look for ways to improve judgment, efficiency, and accuracy without compromising trust.

Some examples given here are tailored to the insurance profession, but the principles apply to a broad range of companies.

From Turing to GPT: How We Got Here

In 1950, Alan Turing proposed a test to determine if a machine could think like a human. Fast forward seventy-five years, and AI isn’t just passing tests—it’s passing the CPA Exam, with GPT-4 scoring 85.1%.

From IBM’s Deep Blue defeating a chess champion in 1997 to today’s large language models (LLMs), the pace of AI progress has been exponential.

And whether you realize it or not, you’re already using AI. From autocorrect to fraud alerts to smart speakers—AI is woven into daily life. The challenge now isn’t adoption—it’s intentional adoption.

 AI isn’t coming for your job. It’s coming for your inefficiencies.

Policies, Governance, and Guardrails

With innovation comes responsibility. Most industries have begun to implement regulations and policies surrounding AI. Some regulations to be aware of for insurance companies are as follows:

• NAIC has adopted its Model Bulletin on AI Use by Insurers
• Utah’s AI Policy Act (UAIPA) and New York’s DFS Circular Letter No. 7 require governance, documentation, and bias testing
• The EU AI Act and NIST AI Risk Management Framework add global and technical structure to oversight

Policy Essentials: How Companies Should Approach AI

Many companies are already using AI—whether management knows it or not. Employees experiment with tools like ChatGPT, Copilot, or Grammarly to boost efficiency and improve results. Without clear policies, that innovation can create real risks around data privacy, accuracy, and compliance.

Strong AI policies don’t have to be complicated. They just need to be clear, consistent, and enforceable. Here are a few foundational steps:

1. Define Acceptable Use

Specify what tools employees may use and what kinds of information are off-limits. For example, prohibit inputting client data or proprietary materials into public AI systems. For an insurance company, importing claims data to perform trend analysis or fraud investigation may be very useful, but make sure the AI system is an enterprise version with security vetted by your IT department. Also consider whether the data needs to be anonymized.

2. Establish Oversight and Accountability

Identify who approves new AI tools and who monitors compliance—your RACI model for AI (who is Responsible, Accountable, Consulted, Informed). Ensure someone “owns” governance, whether it’s your IT director, compliance lead, or innovation committee.

3. Require Verification and Review

All AI-generated work—whether a client email or a financial summary—should be verified by a human reviewer. The standard should be “AI assists, humans decide.” This is what we call “human in the loop” or HITL.

4. Educate Continuously

Train employees on the capabilities and limits of AI. Encourage experimentation—but only within defined ethical and professional boundaries.

5. Document Everything

Keep a record of what AI tools are being used, including where and why. This level of organization and transparency builds trust with regulators, clients, and your own teams.

Starting Smart: Building Your AI Foundation

If your team doesn’t have an AI plan yet, start small:

1. Experiment with free tools to build literacy.
2. Invest in licensed platforms like Microsoft Copilot or ChatGPT Enterprise.
3. Form a task force to explore potential use cases and share what works.
4. Create simple policies that set expectations for responsible use.

Even modest wins—automating meeting recaps, client updates, or document summaries—can save hours weekly and reduce burnout.

The firms that succeed with AI won’t be those that perfect it overnight—they’ll be those that keep experimenting.

Final Takeaway

AI won’t replace accountants or insurers. But those who use AI well in all industries will replace those who don’t.

Our profession has always evolved—from handwritten ledgers to spreadsheets to cloud systems. This is simply the next opportunity. Let’s take advantage of it.  Contact us for further guidance.  Larson and Company has developed a suite of services specifically to serve the needs of companies of all sizes in a wide range of industries.