This paper aims to provide a conceptual model to understand the factors affecting the acceptance of artificial intelligence (AI) technology among health insurance consumers in Jammu & Kashmir. Though health insurance organizations are embracing AI technology at a rapid pace in claims processing, consumer interactions, and fraud detection, consumer adoption of AI technology is low compared to organizational adoption. This paper aims to understand the relationship between socio-economic factors such as income, education, digital literacy, geographic location, and consumer trust as a mediating factor affecting AI technology adoption through a study of empirical data collected between 2021 and 2026. A Contextual Trust Mediated Acceptance Model (CTMAM) has been developed to understand consumer adoption of AI technology in a specific socio-cultural context such as J&K, where infrastructural challenges have shaped consumer technology adoption behaviors in a unique manner compared to other regions. Analysis of empirical data indicates that though 94% of health insurers are actively adopting AI technology, only 21% of health insurance consumers are adopting AI technology, where trust acts as a mediating factor. Concerns for privacy (20%), accuracy perceptions (26%), and transparency issues have a significant impact on the acceptance of AI. Socio-economic factors play an important role in the relative importance of these issues. The comparative analysis of the demographic segments shows that the acceptance of AI is lower for the rural population and women due to the low level of trust in digital technologies.
Sharma et al. (Thu,) studied this question.