The introduction of artificial intelligence in employee benefits administration aims to simplify the process by assisting with everything from compliance tracking and data management, to employee inquiries and open enrollment. More and more companies are discovering they can automate routine tasks and provide personalized, data-driven recommendations.  

 However, although AI can handle part of the workload and free up valuable time for ben admins, it doesn’t eliminate the need for human oversight. As AI in employee benefits becomes more common, understanding AI pros and cons can help you use the technology responsibly. 

The Shift Toward AI in Benefits Platforms 

Adoption of AI in employee benefits continues to grow. Employee Benefit News reports that over 70% of HR and benefits teams are using AI or plan to do so in their current roles. Here’s a quick overview of how ben admin platforms are leveraging AI. 

Automated Enrollment and Onboarding  

In place of error-prone and laborious paper enrollments, AI in ben admin platforms can auto-fill forms and guide employees through complex benefit options. AI tools can integrate with human resources information systems to validate data in real time, minimizing the risk of errors. They can also personalize the ben admin experience, tailoring packages for different life stages and lifestyles.  

Compliance With Federal and State Regulations 

AI in ben admin can help track critical shifts in federal and state compliance rules, tracking legislative changes and performing routine audits. With AI alerting HR teams to compliance risks, companies can avoid late filing and incorrect submissions. 

Personalized Support for Employees 

With AI chatbots and virtual assistants, employees can access benefits information and answers to questions 24/7. HR teams no longer need to repeatedly field the same questions and requests.  

Meanwhile, employees feel supported, whether enrolling for the first time or seeking answers after a life change. With the right AI tools, employees may feel more confident in their benefits choices, enhancing job satisfaction. AI tools can also administer employee surveys to gather employee sentiment data over time and generate actionable insights. 

The Advantages of AI in Benefits Administration 

In one survey, 73% of benefits leaders said they believe AI will positively influence benefits administration. With more personalized employee experiences and fewer enrollment headaches, companies of all sizes stand to benefit from AI in ben admin. 

Helping Employees Make Informed Choices 

AI can analyze an employee’s data and behavior to suggest benefits that align with their needs, such as offering pet insurance to someone who recently adopted a pet. Personalized guidance helps employees feel confident in their selections, encouraging benefits usage and employee retention. 

Minimizing Human Error 

From validating dependents to identifying missing fields, AI checks for errors in real time. More accurate submissions reduce processing delays and miscommunications between brokers, employers, and employees. 

Supporting Better Planning 

By tracking usage patterns, AI can identify which benefits are either underused or growing in popularity. That data allows employers to offer benefits that employees actually want to use, including voluntary benefits like pet insurance or mental health support. 

Integrating With AI-Ready Platforms 

AI-compatible systems and ben admin platforms simplify the setup process, allowing HR teams to expand their benefits offerings. Brokers can also better support clients with fewer integration challenges and faster rollouts.  

The Limitations and Risks of AI in Benefits Platforms 

While AI presents opportunities, it’s not without its risks. A cautiously optimistic approach can help you avoid common pitfalls. 

The Human Element 

AI lacks empathy and nuance. An employee navigating a major life event — such as a divorce or a major health event — may want to talk to a human, not a bot. HR involvement is still crucial for sensitive conversations. 

Bias Concerns 

If the data used to train or run AI systems is incomplete or biased, the results can be unfair. For instance, an algorithm might assume that younger employees always prefer high-deductible plans, ignoring their actual financial or family needs. 

Data Privacy and Security 

AI systems often use sensitive employee information, such as health status, salary, or dependent details, to make recommendations. While some privacy regulations already exist, (like HIPAA and anti-discrimination laws), AI use in HR tech is not yet comprehensively regulated. To protect employees’ information, it’s imperative to ask vendors the right questions about data storage, use, and sharing. 

Implementing AI Responsibly in a Voluntary Benefits Strategy 

AI tools can be powerful assistants in benefits administration. However, HR leaders should ask a few key questions to find the right fit and ensure its responsible use:  

• Can you trace how the algorithms make decisions? Can you override them if needed? 
• What kind of integrations are available?  
• Can you commit to keeping a human in the loop? Automation should support, not replace, your team’s oversight. 

Answering these questions will help you advocate for employees and guide them toward benefits that make sense for their individual needs. 

AI Is a Tool, not a Shortcut 

With AI impacting industries of all kinds, HR leaders can’t afford to excuse themselves from the AI conversation. Improved accuracy, automation of everyday tasks, and a smoother enrollment experience can support employers and employees alike. However, HR leaders need to approach AI usage thoughtfully to ensure it serves everyone well. 

Pet Benefit Solutions proudly supports forward-thinking HR teams and brokers by offering seamless integrations with modern, AI-integrated ben admin platforms. Our flexible, affordable pet benefits are easy to add — and even easier for employees to love. The simplicity of implementing our plans makes adding pet insurance to your voluntary benefits offerings quick and seamless. 

To learn more about offering our plans, request a proposal today.