Report: AI driving major changes in benefits experience

Artificial intelligence, personalization, and human empathy are reshaping the employee benefits experience, according to a new study by benefits solutions provider Businessolver®. The “2024 Benefits Insight Report” is based on an analysis of the behaviors and engagement of over 18 million members that use the company’s Benefitsolver™ platform, and it reveals the issues employees face when using their benefits — including confusion and financial insecurity — and how technology helps employees enroll in and use the right benefits to support their needs.

“No amount of technology will eliminate benefits confusion for employees. It’s simply inherent to the complexity of today’s health care system. For most, enrolling in benefits is like how we approach our taxes: It’s not a priority until we have to do them,” the detailed 25-page report states. “Despite that confusion, however, technology is helping employees optimize and maximize their benefits experience.”

Here are key highlights from the report:

• Artificial intelligence and personalization: AI-driven personalization doubles benefits engagement, resulting in right-fit plan elections, right-time benefits utilization, increased year-round engagement, and successful issue resolutions that stay resolved for seven or more days.

• The human touch: Alongside the positive impact of AI, the report underscores the irreplaceable value of human interaction in benefits, signaling that the most effective and successful AI events in benefits are born from a blend of human empathy and technology.

• Decision support: When employees had personalized support at enrollment, 80% elected a right-fit medical benefit. These same employees are nearly twice as likely to also enroll in supplemental benefits, like accident insurance or critical illness.

Related: Navigating the post-open enrollment marathon for employee benefits

• Financial wellness: Financial preparedness insights show that over half of employees aren’t able to save, but financial benefits are key to supporting long-term stability; 401(k) and tuition assistance were among the top-used benefits last year.

• Year-round engagement: Integrated, multi-channel benefits communications outside of the benefits platform drive year-round awareness of benefits for employees. Benefits-related emails from Benefitsolver see an average 44% open rate, according to Businessolver, and 42% of all members on the platform log in four times or more after enrollment.

“The data is clear: AI supercharges the employee benefits experience from enrollment to activation,” the report concludes. “When personalization and human interactions are amplified with AI, we see positive outcomes across employee self-service, benefits engagement, and HR efficiencies.”