The agencies that would gain most from AI are the least likely to be using it. One 2026 industry report found AI adoption at 91% among agencies with 25 or more producers, but 47% among solo and two-producer shops. Small agencies have the least back-office capacity and the most to gain from help, but also the least time to set up and run new tools.
The size of the gap
The same report found 64% of US insurance agencies use AI in at least one workflow in 2026, up from an estimated 38% in 2024. Adoption leads in quoting, then lead intake, claims handling and customer service. The 44-point gap between the largest and smallest agencies is the number worth noticing.
It matters because small agencies are a big part of the market. The US has about 39,000 independent agencies, and independents placed 87% of commercial lines premiums in 2023, according to ResourcePro. In Canada, finance and insurance businesses are among the most likely to use AI, at 40.4% in the second quarter of 2026, according to Statistics Canada.
Why the gap exists
The obvious answer is budget, but that is only part of it. Three other things hold small agencies back.
Time to set it up. A two-producer agency does not have an operations manager to evaluate tools, map workflows and train staff. Every hour spent on setup is an hour not spent with clients.
E&O caution. Agency owners know errors on certificates and coverage are where claims come from. A tool that might put wrong data on a certificate is a risk they can see.
System lock-in. Most of the agency's data sits in its agency management system. If a tool does not connect to it cleanly, someone has to re-key data both ways.
A tool the agency has to run, check and fix adds work before it saves any. For a small team, that is often a deal-breaker.
What closes the gap
Small agencies do not need more tools. They need the work done, with the controls they would apply themselves:
- Work arrives the way it does today and results land in the agency management system
- Anything that needs a license comes back for approval
- Every item has a record of what was done
- The agency pays for completed work, not for software it has to operate
That is the model outsourcing providers have offered for years with people. The difference now is that agents can do the routine part faster and more consistently, with people on the exceptions.
Where to start
Pick one high-volume task with clear rules, such as certificates or policy checking. Measure how long it takes today. Our guide to choosing agency tasks for AI agents walks through the test. Or see how our insurance agency servicing pack works, including the design partner program for independent agencies in the US and Canada.