Claims Adjusters’ AI Backlash Hits 98% Negative Reviews as Insurers Automate Claims

Insurance claims adjusters are registering the sharpest workplace-AI backlash measured by Glassdoor: 98% of their reviews that mention AI are negative. Their complaint is more consequential than dislike of a new interface. As insurers automate parts of claims handling, adjusters say errors can reach customers and then return to people for correction, amid a shrinking job market.

Where the errors land

The systems at issue are moving into the early and administrative stages of a claim: intake, damage assessment from photos or video, summaries of medical records, and processing uploaded documentation for payouts. These are tasks that can shape which team receives a case, what information is surfaced, and how quickly a payment is issued.

Adjusters told WIRED that AI systems misclassified claims, produced hallucinated summaries, and added work when staff had to correct the output. One risk is that a flawed summary or document reading can lead to an incorrect payout; customers may attribute the resulting confusion to the human adjuster rather than the system.

98%Negative AI-related reviews

Glassdoor found that 98% of claims-adjuster reviews mentioning AI were negative, the highest negative share among workforce groups it examined.

-21%Employment change, May 2025–May 2026

BLS data cited by WIRED showed claims-adjuster employment fell 21% over that year.

-50%Entry-level postings since 2025

Glassdoor data cited by WIRED showed entry-level claims-adjuster postings had fallen 50% since 2025.

The automation model is already visible

Insurers are not all pursuing the same degree of automation, but Lemonade illustrates the more aggressive end of the model. The company said its AI Jim chatbot handled initial reports 96% of the time by the end of last year, while automation handled roughly 55% of all claims. That approach aims to move routine work through quickly and reserve human attention for complex cases.

The worker objection is therefore not that software exists in the workflow. One adjuster told WIRED that AI can help with administrative tasks, such as extending a rental-car booking. The fault line is whether a system is used as a constrained assistant or trusted to make consequential claims decisions whose errors people must unwind.

A workforce reads the rollout through job security

The reaction is unfolding as the occupation declines. In 2024, the Bureau of Labor Statistics projected that the number of U.S. claims adjusters would fall by 18,900, or 5%, over the following decade, citing technology as a major force behind the decline. The more immediate 21% employment drop and the fall in entry-level postings make replacement fears tangible, even though those figures do not by themselves isolate AI as the cause.

Glassdoor senior economist Chris Martin said its data shows reviews become more anti-AI when workers sense layoffs ahead, and when they believe a weak product is being imposed on them or their clients. For insurers, that makes reliability and accountability central deployment questions: faster intake is unlikely to win over staff if the same staff inherit the mistakes and customer anger.