94% of Gen Z employees trust AI-generated benefits recommendations, new study finds.
Younger employees are utilising artificial intelligence tools in making benefits decisions, according to a new report, underscoring the need for HR leaders to make benefits information clear and accessible to the workforce.
Findings from The Hartford's recent study showed that 17% of employees are using AI to help with benefits decisions during open enrollment, with more than half of those workers being Gen Zs.
The top use of AI when it comes to benefits enrollment is for comparing different benefits options (59%), the report revealed. This is followed by getting general information about benefits (55%).
Other employees who utilised AI during benefits enrollment used it to:
- Get personalised recommendations (51%)
- Calculate cost or estimate expenses (45%)
- Have someone tell them exactly what to choose or buy (31%)
The utilisation of AI comes amid uncertainty surrounding benefits, according to the report, which found that 43% of employees are never sure they are choosing the right benefits.
Should HR leaders be worried?
These findings are likely to raise concerns among HR leaders, especially as it found that 94% of Gen Zs who use AI during benefits enrollment trusted the recommendations it provided.
But Mike Fish, head of Employee Benefits at The Hartford, said the situation offers HR leaders an opportunity to guide workers to trusted resources when it comes to benefits.
"Our study shows that employees –particularly Gen Z – are already using AI as one of the many sources to understand their benefits," Fish told HRD in a statement.
"HR leaders have an opportunity to guide workers as this new environment emerges by ensuring they also have access to trusted, employer-supported resources and clear benefits communication."
The key for HR leaders is to meet employees where they are while reinforcing trusted sources of information, according to Fish.
"Our findings show workers are pulling benefits guidance from multiple places – HR portals, peers, and now AI – so clarity and accessibility matter more than ever," he said.
"Employers can help by providing simple, easy-to-understand benefits information and offering knowledgeable support tools that make it easier for employees to compare options, understand costs, and fill coverage gaps."
