Employers are poised to rapidly expand their use of artificial intelligence (AI) in health benefits over the next few years, although they face challenges related to resources and governance, according to a new survey by WTW.
The survey, published last week, gathered responses from 312 employers representing 4.6 million employees across the United States. Conducted in January and February, the study reveals that only 20% of employers currently actively utilize AI in their benefits programs. However, there is a notable shift on the horizon, with 72% of employers planning to incorporate AI into their benefits offerings within the next two years. Respondents indicated that they are adopting AI to enhance communication, data analysis, insights, and personalized assistance.
“AI is quickly moving from pilot stages to practical application in health and benefits, and employers are considering where they expect to derive value,” stated Jeff Chandler, head of health and benefits marketing in North America at WTW. “The highest demand is for improvements in communication, analysis, and decision support—areas where AI can significantly enhance the way benefits teams make decisions and support employees. But ambition alone is not enough. Scaling AI responsibly requires solid foundations.”
The survey also highlighted that early adopters of AI, accounting for about 16% of the respondents, demonstrate what is necessary for effective technology implementation. These organizations are more likely to have “developed clear strategies, roadmaps, and governance frameworks for AI, focusing on initiatives that enhance employee experience while driving efficiency,” according to WTW. Many are also turning to external partners for support in monitoring, auditing, and evaluating claims.
Despite the rapid push for AI integration in health benefits, many employers still encounter obstacles. Approximately 71% of benefits teams report having limited or no access to internal AI resources.
Moreover, 70% of employers expressed concerns regarding data privacy and security, while 66% were apprehensive about potential AI errors, and 64% voiced worries about compliance and fiduciary exposure.
Only 1% of organizations stated they have a “fully developed AI roadmap or a formal governance framework specific to benefits.” However, 56% reported that they are in the process of creating or considering creating one.
“Looking forward, the majority of employers believe that AI will fundamentally change how benefits are managed and delivered within the next five years,” remarked Jeff Levin-Scherz, population health leader, health and benefits at WTW. “While current adoption remains uneven, the scale of planned investments suggests that AI will soon be integrated into the core operations of benefits. Data from early adopters indicate that organizations need clear roadmaps, access to appropriate expertise, and strong governance to manage risks and turn AI ambitions into tangible results.”
Photo: Pakorn Supajitsoontorn, Getty Images
