Artificial intelligence is being adopted by the insurance sector in South Africa (SA) to improve efficiency, client satisfaction, and decision making. Full adoption is impeded by obstacles, even with substantial investments. This study uses a case study methodology and contingency theory to investigate the factors influencing the adoption of artificial intelligence. The association between the use of artificial intelligence and industrial framework was investigated using qualitative data from interviews and document analysis. The results shown adoption is greatly impacted by non-technological elements such as leadership, staff capabilities, change management, and corporate culture. The study emphasises the difficulties in implementing artificial intelligence and the necessity of a thorough strategy considering both non-technological and technology issues. The industry can stay competitive, improve operational efficiency, and overcome obstacles with the aid of such a strategy. The importance of artificial intelligence in transforming the SA’s insurance industry is discussed in this study.