Reimagining Workers' Compensation in the Age of Generative AI

Originally published by GuideWire on December 10, 2025.

Guidewire and PwC released a joint report analyzing how generative AI is reshaping the workers' compensation market amid rising medical costs, shifting workforce demographics, and increased mental health claims. The report highlights that 87% of surveyed workers' compensation carriers are building or planning AI platforms, with 60% having defined enterprise or business unit AI strategies.

The report identifies five key trends accelerating change in workers' compensation: medical cost inflation outpacing baseline rates since 1982, retirement of seasoned underwriters creating talent gaps, post-pandemic increases in mental health claims, higher litigation exposure from nuclear verdicts, and complex multi-jurisdictional regulation. These pressures are driving insurers toward AI solutions that span loss control, medical bill review, case management, and return-to-work planning.

Generative AI enables a fundamental shift from process-centric to worker-centric models through four capabilities: integration with insurer data platforms, AI-powered expertise embedded in workflows, intelligent data extraction from claims documents, and 24/7 personalized support for injured workers. The report notes that 100% of survey respondents expect operational efficiency improvements from AI, while 60% anticipate better return-to-work outcomes. Forward-looking carriers are establishing AI centers of excellence to drive enterprise-wide adoption across underwriting, proactive intervention, claims triage, injury analysis, and decision support.

Read the full article at Guidewire.