7 Ways Insurance Adjusters Can Use AI

Can AI actually help you handle claims faster? What’s the catch?

Veteran adjuster Jim Cresse gave two AI tools the same estimating exercise. Both created an estimate in about 20 to 30 minutes. One came in roughly 15% below the estimate he prepared. The other came in about 15% above it.

On a $50,000 loss, that would be the difference between $42,500 and $57,500.

That example captures both the promise and the risk. AI can produce useful work quickly, but speed does not make the result correct.

At AdjusterPro, we have spent more than two decades helping people get licensed, build practical claims skills, meet continuing education requirements, and grow in the industry. Our goal is not to convince you to use AI for everything. It is to show you how AI is currently being used, where it can help, where you still need to slow down, and how to use it in ways that strengthen your claims work and the skills you bring to employers.

In this article, we’ll walk through seven practical claims tasks AI can help with, along with the safeguards you need to verify its work, protect claim information, and keep professional judgment in your hands.

Table of Contents

• 1. Summarize a Long Claim File
• 2. Build a Claim Chronology
• 3. Organize Inspection Notes
• 4. Draft Clearer Claim Communications
• 5. Research Insurance Rules
• 6. Build an Inspection Checklist
• 7. Flag Claim Inconsistencies
• Protect Claim Information When Using AI
• Next Steps for Using AI in Insurance Claims

1. Use AI to Summarize Insurance Claim Files

AI can help turn a long claim file into a short summary before it moves to another adjuster, supervisor, attorney, or specialized team.

In Claims Journal’s Sentry Transformation Saves ‘Tens of Thousands of Hours’ with AI in Claims, Sentry Insurance says it uses Anthropic’s Claude to create claim summaries from file notes and diary entries. The company estimates that the tool saves tens of thousands of hours each year. Employees had previously spent about 30 to 45 minutes writing each summary.

A good handoff summary includes the key facts of the loss, inspections completed, payments made, open issues, upcoming deadlines, and documents still needed.

Ask AI to organize those details into a clear handoff summary. Tell it to flag missing, conflicting, or unclear information instead of filling in the gaps.

Keep in mind: Check the summary against the original claim file before relying on it.

2. Build Claim Chronologies with AI

Insurance companies are already testing AI to help adjusters sort through large claim files.

In Claims Journal’s How A Long-Lived Super-Regional Carrier Is Implementing AI in Claims, Westfield described testing a ChatGPT tool that summarized medical records and demand packages for casualty claims. The company first tested the idea, then ran a 60-day pilot. Westfield said the tool performed better than expected for both accuracy and time savings.

Westfield also put rules and review steps in place before using the technology more widely. The goal was to help adjusters find important facts faster while leaving claim decisions to the adjuster.

Westfield used AI for summaries, not specifically to build claim chronologies. But adjusters can apply the same basic idea when using AI to organize claim records by date.

A claim chronology is a timeline of what happened and when. You might ask AI to pull important dates and events from:

• Claim notes and emails
• Inspection and expert reports
• Medical records and statements
• Estimates, invoices, and payments
• Legal documents

For example, you could ask AI to create a table showing the date, event, source document, and page number for each important item.

This can make it easier to spot missing records, dates that do not match, gaps in the timeline, or facts that need a closer look.

When Using AI to Build a Claim Chronology

• Ask AI to show the source for each entry.
• Check important dates against the original records.
• Do not assume the timeline is complete just because it looks organized.

AI can put the information in order. You still decide what it means for the claim.

3. Use AI to Organize Insurance Inspection Notes 

Use AI to organize rough inspection notes into a clearer report without changing the facts recorded during the inspection.

Inspection notes are rarely captured in perfect order. An adjuster may have room measurements, voice notes, photograph numbers, material descriptions, recorded statements, document requests, and unanswered questions mixed together.

AI can sort that information into sections such as:

• Loss Overview
• Areas Inspected
• Observed Damage
• Measurements
• Photographs
• Statements
• Documents Requested
• Follow Up Items

A useful prompt might say:

Organize these inspection notes under the headings Loss Overview, Areas Inspected, Observed Damage, Measurements, Photographs, Statements, Documents Requested, and Follow Up Items. Use only the information provided. Keep the adjuster’s observations separate from statements made by the insured, contractor, or other parties. Preserve all measurements, dates, photo numbers, and material descriptions exactly as recorded. Flag missing, unclear, or conflicting information instead of filling in the gaps. Do not add facts, causes of loss, coverage conclusions, or repair recommendations.

The adjuster should review every line before placing the report in the claim file. AI may make a rough observation sound more certain than it was, combine statements from different sources, or turn an unanswered question into a conclusion.

AI should improve the structure of the inspection report, not rewrite the history of the inspection.

4. Use AI to Draft Clearer Claim Communications

Use AI to improve the clarity, tone, and organization of a claim letter or email without changing its meaning. This can help adjusters explain complex information in plain language while preserving the facts and claim position.

AI can help when an adjuster needs to:

• Explain which documents or information are still needed
• Confirm the next step in the claim
• Organize several requests into a clear list
• Rewrite technical language in plain English
• Remove wording that sounds defensive, vague, or confusing
• Adjust the tone for the intended audience

A useful prompt might say:

Rewrite this email in clear, respectful language, at a 9th grade level. Keep every fact, date, amount, deadline, document request, and policy reference unchanged. Do not add a coverage explanation, legal conclusion, payment commitment, or promise about the claim outcome. Do not remove any required information. Please flag any sentence that is unclear or could be interpreted in more than one way.

The adjuster should compare the revised message with the original draft before sending it. Pay close attention to statements about coverage, payment, deadlines, required documents, and next steps.

A cleaner message is not useful if AI quietly changes the claim position or creates a promise the adjuster did not intend to make.

AI should improve how the message is written. The adjuster remains responsible for what the message says.

5. Use AI to Research Insurance Rules and Regulations

AI can help you find a rule, bulletin, or agency page. But the original government source should be your source of truth (not the AI).

In a May 2025 internal test, AdjusterPro asked Gemini to interpret Kansas Statute 40-924. Gemini reached the opposite conclusion from the statute because it misread the effect of the word “and.” It then built a detailed explanation on top of that mistake.

That is what makes AI hallucinations risky. An answer can sound well researched even when the starting point is wrong.

For example, states are already setting expectations for AI use in insurance:

• The Kentucky Department of Insurance says AI-supported decisions still have to follow insurance laws, including rules on unfair trade practices and discrimination.
• The Texas Department of Insurance reiterates this, and says a person should review and agree with a consequential AI-supported decision before action is taken.
• As of July 7, 2026, 25 jurisdictions had adopted the NAIC Model Bulletin on insurers’ use of artificial intelligence. California, Colorado, New York, and Texas were listed separately as having their own insurance-specific rules or guidance.

These are examples, not a complete list. Rules vary by state and continue to change.

Use AI to help find the answer, then open the statute, bulletin, or agency page and verify it yourself.

6. Use AI to Build Better Claims Inspection Checklists

A good inspection starts with knowing what you need to verify. Try using AI to turn the facts already in the claim file into a checklist of items to inspect, photograph, measure, request, or confirm.

Ask AI to build the checklist using only the information you provide. Tell it not to assume the reported cause of loss is correct and to flag missing or unclear information instead of filling in the gaps.

Review the checklist before using it in the field. AI can miss an important detail or treat an unconfirmed statement as fact.

The goal is to walk into the inspection with a clear plan, document what matters, and leave with fewer unanswered questions.

7. Find Inconsistencies in Insurance Claims Through AI Analysis

AI can help compare claim records and flag details that do not line up.

In Verisk’s Image Forensics: How Photo Data Can Reveal Claims Fraud, a Florida fence claim included a photo that did not match the reported loss details. The claim listed West Palm Beach in September 2018, while the photo metadata placed the image in Lake Placid in July 2015, about three years earlier and 100 miles away.

That kind of comparison is becoming even more important as AI makes it easier to alter claim evidence.

In Allianz UK’s Posting Car Pics Fuels Fraud, investigators found a claim that used a photo copied from social media and edited with AI to add a cracked bumper. A false repair invoice for about £1,000 was submitted with it. Allianz also investigated an £80,000 water-damage claim supported by a photo that appeared to show a flooded kitchen. Investigators found problems with the invoices, water patterns, and reflections, and later determined that the kitchen had not flooded.

AI can help an adjuster compare records and flag:

• Dates or locations that do not match
• Different descriptions of the same damage
• Invoice totals that conflict with other records
• Names, addresses, or vehicle details that change
• Missing sources or documents

Keep in mind: A mismatch is a reason to investigate, not proof of fraud. Ask AI to use neutral labels such as “needs verification,” “documents conflict,” or “information is missing.”

AI can help you catch what does not add up, so that you can verify the evidence and find out why.

How to Protect Insurance Claim Information When Using AI

Do not upload claim information unless your company has approved the exact AI product, account, and intended use. A platform’s ability to accept a document does not mean that document is appropriate to upload.

Claim files may contain personal information, medical records, photographs, loss locations, policy details, litigation documents, and internal work product. Removing a name or address does not automatically make the remaining information safe or appropriate to share.

Most importantly, vendor privacy protections do not give an adjuster permission to upload claim information. Your employer may have additional rules about the tool, account, information, and task you can use.

Before using AI for claims work, confirm that:

• The exact product and account are approved
• The task is permitted
• The information is allowed to be processed
• Access and retention settings meet company requirements
• A qualified person will review the output
• The final work can be explained and supported

The safest rule is simple: company approval comes first. Check the tool, the account, the information, and the task before you upload anything.

Next Steps for Using AI in Insurance Claims

AI can help adjusters research information, compare documents, improve report organization, and reduce time spent on certain repetitive tasks. Its value depends on the task it is given, the information it receives, and the review that follows.

Start with a clear purpose. Use an appropriate tool. Check important information. Follow your organization’s requirements. Most importantly, remain involved in the final work.

AI may change how claims tasks are completed, but thoughtful professional judgment remains central to the adjusting process.