The study examines the effect of Artificial intelligence on service quality in claim processing, focusing on its impact on economic and market performance. The researcher aims to investigate the effect of technology in providing quality service (AISAQUAL) to insurance sector customers when they use these services to claim the sum insured. A cluster sampling method was employed to collect responses from 384 customers across the insurance companies. SPSS V.21 was used to perform simple percentage analysis, paired sample t-tests, and multiple linear regression analysis to validate the hypothesis. The study revealed that efficiency and security are the highest predictors and most influential variables in determining the quality of service rendered by insurance companies through Artificial Intelligence Service Agents (AISA) to their customers, thereby predicting economic and market performance. This technology is often impacting our routine lives in the form of smartphones, security and surveillance, social media platforms, location navigation, E commerce, banking and financial sector, autonomous vehicles and smart homes.