The Chartered Insurance Institute has warned that a critical artificial intelligence fluency gap in insurance could undermine responsible adoption if firms move faster than their people’s ability to understand, challenge and govern the technology.

A new CII report, Responsible AI: From Policy to Practice, outlines how boards, risk functions and customer-facing professionals need practical training that goes beyond basic AI tool use. It calls for greater critical thinking, professional scepticism and confidence to challenge automated outputs.

The CII says the gap between AI adoption and professional understanding will be central to the industry's ability to deploy the technology with clear objectives, appropriate judgement and public trust. It warns against adoption being driven primarily by the fear of being left behind or by a narrow focus on efficiency.

The report recommends that firms define the problem AI is intended to solve before selecting or deploying technology. They should also assess whether a tool is appropriate for the customer, business objective and level of risk involved.

It cautions that having a human in the loop is not, by itself, a sufficient safeguard. Human oversight must involve someone who is active, informed and accountable.

Dr Matthew Connell, director of policy and public affairs at the CII, said: “AI has the potential to improve how insurance and personal finance firms serve customers, but only if it is adopted with purpose, transparency and professional accountability at its core. There is a responsibility to use these tools in ways that strengthens trust, and does not dilute the human judgement and ethical standards that uphold our profession.”

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