Negotiation has always been viewed as an art—one shaped by experience, intuition, and the ability to read people. For claims professionals, this skill comes into play in every conversation with attorneys, insureds, and claimants. At its core, negotiation is about understanding motivations, expectations, and communication styles.
While artificial intelligence (AI) cannot replicate empathy, judgment, or rapport-building, it can significantly strengthen the analytical foundation behind those human skills.
As AI continues to evolve, its role in claims negotiations is becoming increasingly valuable, particularly in the areas of preparation, strategy, and execution. However, its effectiveness depends on one critical principle: AI must remain a tool that supports decisionmaking; not one that replaces it.
Preparation Enhancement
Preparation has always been one of the most important components of successful negotiation. Claims professionals are expected to evaluate extensive medical records, treatment histories, liability facts, prior claims activity, and litigation exposure—often under significant time pressure. AI can help streamline this process by quickly analyzing large volumes of information, summarizing medical treatment, identifying inconsistencies, and flagging patterns that may impact liability or damages.
AI also enhances negotiation preparation through predictive modeling. By evaluating venue trends, judicial tendencies, prior claim outcomes, and even negotiation patterns associated with specific attorneys, AI can help forecast potential settlement ranges and litigation risks. Understanding how a particular attorney historically approaches settlement discussions or how certain jurisdictions tend to evaluate injury claims allows adjusters and attorneys to enter negotiations with a more informed and strategic perspective.
Necessary Guardrails
However, the use of AI requires clear guardrails and thoughtful oversight. AI should never operate as an autonomous decision-maker. Recommendations generated by AI must always be reviewed within the broader context of the claim. Human judgment remains essential, particularly when handling complex injuries, evolving liability issues, or emotionally charged situations.
Validation is one of the most important best practices in the use of AI. While these tools can process information quickly, they are not infallible. AI can misinterpret information, omit key details, or generate inaccurate conclusions. Claims professionals must verify outputs, confirm that flagged inconsistencies are legitimate, and ensure privileged or sensitive information is handled appropriately. The quality of AIgenerated insights will always depend on the quality of the information being reviewed and the experience of the professional interpreting it.
Execution Assistance
Once preparation is complete, negotiation execution becomes the true test of strategy and communication. This is where AI can continue to support adjusters and attorneys in real time.
During negotiations, AI can assist by organizing information quickly and surfacing relevant insights such as prior settlement outcomes, comparable claims, or supporting documentation. Immediate access to this information allows negotiators to respond more confidently, maintain consistency, and make more informed decisions during fast-moving conversations.
AI can also help identify communication and negotiation patterns. Some attorneys may consistently begin with inflated demands before moving toward realistic settlement discussions, while others may rely heavily on litigation pressure or emotional arguments. Recognizing these tendencies can help claims professionals remain strategic and avoid reacting impulsively during negotiations.
The Human and Regulatory Key Components
At the same time, successful negotiations remain deeply human. AI cannot interpret tone, hesitation, frustration, or urgency the way an experienced adjuster or attorney can. It cannot build trust, establish rapport, or recognize when empathy will be more effective than pressure. Negotiation often requires reading between the lines, adapting communication styles, and understanding the emotional dynamics behind a claim. These skills are developed through experience and emotional intelligence—not automation.
Transparency and compliance are also critical considerations when integrating AI into claims handling. Organizations should establish clear policies defining how AI tools may be used, how outputs should be validated, and how data privacy and documentation requirements will be maintained. Claims professionals should understand not only how to use AI effectively, but also its limitations and risks.
AI has the potential to become a powerful support tool in claims negotiations by improving efficiency, consistency, and access to information. However, technology alone will never determine the outcome of a negotiation. The most effective negotiators will continue to be those who combine datadriven insights with sound judgment, strong communication skills, and a clear understanding of the human element behind every claim.
About the Authors:
Venessa Perkins is assistant vice president, auto claims, at Selective Insurance. venessa.perkins@selective.com
Jennifer Kronenberg is casualty manager at Fortegra. jkronenberg@fortegra.com