AI Use in Health and Benefits Rising, But Execution Gaps Remain

Nearly three-quarters of U.S.-based employers plan to embed artificial intelligence (AI) into their health and benefits programs within the next two years, according to the results of WTW’s 2026 AI Use in Health and Benefits Survey.

The consulting firm’s study, which included responses from 312 employers in January and February, showed organizations are shifting from experimentation to execution to improve communications, data analytics and personalized employee support, despite execution hurdles and resource constraints.

Shifting from Experimentation to Execution

Survey respondents shared they are increasingly using AI toward employee benefits management, moving out of the pilot stage and into core operations. And while just 20% of these organizations are currently operationalizing AI within their benefits programs, that figure is projected to spike significantly, with roughly 72% of employers planning to embed AI technologies within the next 24 months.

Primary drivers for this surge include the need to control escalating corporate healthcare costs while delivering a better employee experience. Surveyed organizations are focusing their AI investments on high-value areas such as:

• Improved communication (cited by 68% of respondents);
• Data analytics and insights (59%); and,
• Personalized support (57%).

Early Adopters Lead the Way

A small cohort of early adopters, representing 16% of responding organizations, are setting the standard for AI integration. The study showed these trailblazers are prioritizing employee experience and efficiency through targeted personalization and heightened decision intelligence.

According to Jeff Chandler, WTW’s North America commercialization leader for health and benefits, understanding AI’s potential is just the beginning.

Early adopters are significantly more likely to have installed clear AI strategies, governance frameworks and roadmaps. Additionally, many of these organizations are leveraging third-party partners to accelerate near-term impacts in areas like claims auditing, monitoring and evaluation.

“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,” Chandler said. “The strongest demand is … in 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.”

As the technology matures, these successful implementations highlight the importance of balancing rapid innovation with strong internal oversight and policy.

An AI-Focused Future

In general, the survey participants anticipate AI will have either a mostly positive impact on their HR operations in the next two years by fostering gains in:

• Benefits oversight;
• Analytics and insights;
• Communication and support; and,
• Governance and strategy.

Despite this optimism, the survey highlighted some holes that require filling. Top barriers include:

• Limited or no access to the internal AI resources and skills needed to deploy AI effectively, even when enterprise-level AI capabilities exist elsewhere in the organization (cited by 71% of respondents);
• Data privacy and security concerns (70%);
• AI mistakes and errors (66%);
• Legal compliance and fiduciary exposure (64%).

Just 1% of organizations reported they currently have a fully developed AI roadmap or formal governance framework specific to benefits, although 56% said they are developing or exploring 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, WTW’s North America population leader for health and benefits. “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.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Organizational Performance
• People Analytics