AI and employee benefits: Elevating the benefits impact gap

Many employers may not know the key role that AI is playing in the employee benefits and wellbeing experience.

Alight recently hosted a webinar where our experts dove into what we call the "benefits impact gap" and the pivotal role of Artificial Intelligence (AI). This new technology is changing how employees engage with their benefits and make informed decisions about their health, wealth and overall wellbeing.

Understanding the employee benefits impact gap

One of the central themes of the webinar was the “benefits impact gap.” Despite the rising cost of employee benefits, many employers aren’t seeing much return on their investment. Employees feel overwhelmed by the choices and struggle to make the most of what’s available. In fact, our recent Alight Mindset Study revealed that over 80% of employees feel overwhelmed by the number of benefits options available, with more than half admitting they don’t fully understand the benefits available to them.

This gap creates a significant challenge for employers looking to provide meaningful support while ensuring their employees are maximizing the value of their benefits. AI is stepping in to help bridge this gap, offering personalized solutions that guide employees to the right choices at the right time.

Driving better outcomes through employee benefits personalization

AI enables us to understand employees on a deeper level, offering tailored recommendations that align with their personal circumstances. This approach is particularly impactful during moments that matter, such as open enrollment or when an employee is making decisions about healthcare or retirement savings.

A real-world example of AI and employee benefits

Our client wanted their employees to better understand the importance of contributing to their Health Savings Accounts (HSAs). Through Alight, AI helped the company enroll their employees in high-deductible health plans (HDHPs). Using AI to offer personalized recommendations, our client saw a significant increase in HSA contributions, with many employees saving more than $1,200 annually. This kind of tailored outreach not only empowers employees to make better financial decisions but also delivers measurable savings for employers.

Ethical considerations and responsible AI use

Alight is committed to reducing bias in our AI models, ensuring that benefits recommendations are based on data that is fair and unbiased. Our ethical AI approach involves continuously evaluating and refining algorithms to maintain transparency and uphold ethical standards. Our AI governance committee evaluates any proposed additional use of AI before it’s implemented.

The future of AI in employee benefits

AI’s role in employee benefits will continue to evolve. The ability to leverage vast datasets, generate actionable insights and provide personalized support will only become more significant. AI is poised to transform how we think about employee benefits, driving better outcomes and helping organizations build a healthier, more financially secure workforce.

For more insights and to explore how AI can transform your organization’s employee benefits, be sure to check out the full webinar recording or reach out to our team at Alight Solutions.