Adoption of Artificial Intelligence Technology and Its Impact on Insurance Company Performance in Kenya

This study investigates the adoption of artificial intelligence (AI) technologies and their impact on the performance of insurance companies in Kenya. While AI has been widely acknowledged for improving operational efficiency, risk management, and regulatory compliance, limited empirical evidence exists on its measurable influence within the insurance sector. A descriptive research design was employed, focusing on 71 insurance companies registered with the Insurance Regulatory Authority (IRA). Both qualitative and quantitative data were collected to assess the relationship between AI adoption and organizational performance. The results indicate that AI adoption has a significant positive effect on performance, explaining 57.9% of the variability observed. Technologies such as generative AI, machine learning and deep learning, blockchain, natural language processing (NLP), computer vision, and IoT were found to contribute substantially to operational improvements and customer service delivery. The findings highlight the strategic importance of AI integration in enhancing competitiveness and efficiency within Kenya’s insurance industry. Broader adoption of AI technologies is recommended to strengthen performance outcomes across the sector. This study provides empirical evidence on the relevance of AI adoption in the Kenyan insurance industry, addressing a critical gap in existing literature and offering insights for both practitioners and policymakers. Keywords: Artificial Intelligence, AI Adoption, Insurtech Artificial Intelligence Technology