Barclays Sees AI as a Productivity Enabler for Brokers, Upgrades Gallagher and Towers Watson

Barclays upgraded Arthur J. Gallagher and Willis Towers Watson, citing overreaction to AI disruption fears. The bank views AI as a productivity enabler that expands broker margins rather than a threat that compresses them. Barclays trimmed its price target on Brown & Brown, Inc. to $80 from $82, maintaining an Equal Weight rating. The upgrades and downgrade are based on Barclays' belief that the market has overreacted to AI fears, and the bank believes the insurance broker group has derated sharply.