Employers are planning to rapidly expand their use of AI in health benefits over the next couple of years, but are struggling with resources and governance, according to a new survey from WTW.
The survey, published last week, received responses from 312 employers with 4.6 million U.S. employees. It was conducted in January and February.
It found that only 20% of employers are actively using AI within their benefits programs. However, this will change quickly, as 72% of employers are planning to add AI into their benefits programs in the next two years. Respondents say they’re adopting AI to improve communication, data analytics and insights and personalized support.
“AI is moving quickly from pilots to practical application in health and benefits, and employers are deliberate about where they expect it to deliver value,” said Jeff Chandler, North America commercialization leader of health and benefits at WTW. “The strongest demand is around improving communication, analytics and decision support — areas where AI can materially improve how benefits teams make decisions and support employees. But ambition alone isn’t enough. Scaling AI responsibly requires the right foundations.”
The survey also found that early adopters of AI (representing about 16% of respondents) are showing what’s needed to effectively implement the technology. These organizations are more likely to have “clear AI strategies, roadmaps and governance frameworks in place and are focused on initiatives that enhance the employee experience while driving efficiency,” according to WTW. Many are also turning to external partners to support claims monitoring, auditing and evaluation.
Although employers are moving rapidly to implement AI into their health benefits, many are still experiencing challenges. About 71% of benefits teams report having limited or no access to internal AI resources.
In addition, 70% of employers cited concerns about data privacy and security, while 66% were worried about AI mistakes and errors and 64% expressed concerns about compliance and fiduciary exposure.
Only 1% of organizations say they have a “fully developed AI roadmap or formal governance framework specific to benefits.” However, 56% said they’re creating or considering one.
“Looking ahead, employers overwhelmingly believe AI will fundamentally change how benefits are managed and delivered over the next five years,” said Jeff Levin-Scherz, population health leader, health and benefits at WTW. “While adoption remains uneven today, the scale of planned investment suggests AI will soon become embedded in core benefits operations. Evidence from early adopters suggests that organizations need clear roadmaps, access to the right expertise and strong governance to manage risk and turn AI ambition into real outcomes.”
Photo: Pakorn Supajitsoontorn, Getty Images
