Nationwide commits $1.5B to AI, targets 90% workforce adoption by 2026

Nationwide has announced a $1.5 billion technology investment through 2028, with $100 million earmarked annually for AI initiatives over the next three years. The property and casualty insurer aims to increase AI adoption from 45% of its workforce currently using Microsoft Copilot and other AI tools to 90% by 2026, representing a strategic shift from experimentation to scaled implementation.

The big picture: Nationwide’s investment represents a 20% increase from recent annual technology spending and signals a broader industry pivot toward focused AI deployments with measurable business outcomes rather than scattered pilot projects.

Strategic shift: The company moved away from dozens of fragmented AI experiments after leadership grew concerned about unclear productivity gains.

• Ten C-suite executives collaborated to identify 18 flagship AI use cases to prioritize across the business.
• “We stepped back and we said, ‘We’ve got to get out of experimentation mode,'” says Jim Fowler, Nationwide’s chief technology officer.
• The new approach focuses on setting ROI targets large enough that “even if we don’t get to the full target, we will still be wildly happy with the outcome.”

Key AI applications: Several flagship initiatives demonstrate the insurer’s focus on automating complex processes and reducing operational bottlenecks.

• A pet insurance claims tool will automate 80% of claims processing, including instant settlement of 25% of cases.
• Farm and agricultural insurance AI tools are expected to reduce claim review time by 20%.
• A generative AI claims assistant summarizes complex customer claim logs into one-paragraph summaries for representatives.
• AI-enabled code migration tools have already driven a 50% reduction in legacy code conversion time.

Current progress: Nationwide has scaled six AI initiatives and identified approximately 1,000 employees who have significantly improved productivity using AI tools.

• Nearly half of the company’s 22,000 employees currently use AI tools daily.
• The company has invested $5 billion in technology modernization since 2015.
• Fowler aims to cut software development cycle time by 50% using AI coding assistants.

Growth strategy: Rather than viewing AI purely as a cost-cutting measure, Nationwide positions the technology as a growth enabler amid expanding business demands.

• Company sales have grown 50% over the past five years with continued growth expected.
• “This isn’t just an efficiency play,” Fowler explains. “AI is not just about productivity.”
• The approach contrasts with companies like Amazon, which announced 14,000 job cuts this week as it accelerates AI spending.

What’s next: Nationwide will host a symposium next week for roughly 1,000 senior employees to align technology expectations and strategy across business units, featuring both internal and external speakers on AI implementation and operational improvements.