What Agencies Should Know About AI and Data Exposure
AI is becoming part of daily work in many insurance agencies, supporting emails, marketing, and internal efficiency. It saves time and improves communication.
According to the 2026 ACT Tech Trends Report, 68% of agencies plan to increase AI use, while 8% are currently using it in daily workflows.
There is one question that often gets missed.
What happens to your data when AI tools are used in your agency?
The Risk Most Agencies Do Not See
Many AI tools process and retain information that is entered, which means:
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- Client information may be exposed
- Data may be stored or reused
- You may lose control over how sensitive information is handled
From the 2026 ACT Tech Trends Report:
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- 68% of agencies plan to increase AI use
- 8% are currently using AI in daily workflows
- 56% do not have a written AI policy
- Process, governance, and training are the top barriers to adoption
AI adoption is accelerating, but structure and controls are still catching up.
Even simple uses like drafting emails can create risk if client details are included.
AI tools should be treated like a fast, capable employee that still requires clear rules and oversight. Without defined boundaries, they may access, summarize, or use information in ways you did not intend.
Where Risk Increases
If employees begin connecting AI tools to:
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- Email systems
- File storage such as SharePoint or Google Drive
- Internal databases
You could unintentionally expose:
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- Client information
- Financial data
- Proprietary business processes
- Historical records you forgot even existed
Combined with years of stored data, this can expose information most agencies have not accounted for.
Why This Matters
This is not just a technology issue. It affects your agency’s data protection, your responsibility to clients, and the trust clients place in you as their advisor.
Many agencies also discover their workflows are not well documented or consistently followed. This makes safe AI adoption difficult, because AI works best when processes are structured and consistent.
Without this foundation, AI can expose sensitive information faster than most agencies can detect.
This May Affect Cyber Insurance
Cyber insurance providers are still determining how AI fits into risk and coverage.
Most policies do not yet specifically address AI, but that is beginning to change. Carriers are starting to evaluate how businesses use AI and what controls are in place.
Agencies may begin to see more questions about AI usage, data handling, and governance.
What to Do Now
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- Set an AI usage policy
- Train staff not to enter sensitive data into public AI tools
- Review stored data and reduce what is no longer needed
- Evaluate AI tools before connecting them to your systems or data
- Conduct an AI risk assessment to understand current exposure and gaps
Bottom Line
AI can improve efficiency, but the risk is giving it access to data without understanding the exposure.
Need Help Getting Started
Northstar Technology Solutions provides AI Risk Assessment and Data Governance services to help agencies identify exposure and put practical safeguards and controls in place.
Our team provides a full range of technology services—always focused on practical, reliable results that help your business grow.