KPMG Finds Insurers Spend Only 5–10% Of AI Budget On Revenue Growth

The Common Question

How much AI spending is dedicated to operations versus growth?

The Lesson in This Case

Only 5–10% of insurer AI budgets flow toward revenue-generating initiatives, while nearly half gets absorbed by back-office and operational efficiency work – a split that explains why so many AI programs struggle to show meaningful returns. The concentration of spend in cost-reduction mode limits the upside and leaves growth opportunities largely unfunded. Senior leaders should audit where AI dollars actually land, not just where they were intended to go, because budget allocation is the real ROI lever hiding in plain sight.

Originally reported by FutureCFO. Read the full story here.