What AI Means for the Future of Employee Benefits

You’ve likely noticed artificial intelligence (AI) is showing up everywhere. Resume screening, engagement tools, you name it. But one of the biggest changes is happening in a place many overlook: your employee benefits plan.

At Prime Benefits Group, we work with employers every day who are trying to make sense of technology and what AI means for the future of employee benefits. Most importantly, they want to know how to use AI responsibly.

Done right, AI can help you build a smarter, more responsive plan. But it also raises questions around health data, privacy, and decision-making.

Here’s what to watch for:

Smarter Mental Health Support with AI-Powered EAPs

One of the clearest use cases for AI in benefits is in mental health. Today’s Employee Assistance Programs (EAPs) go far beyond the old 1-800 number. We’re now seeing AI-based mental health check-ins that personalize care, apps offering therapy on demand, predictive anonymized alerts for HR teams, and nudges for mindfulness, sleep, and stress tracking.

According to a recent report, nearly one in three Canadian workers report moderate to severe mental health risks. However, EAP usage remains low, often under 10 per cent.

This is where AI can help bridge a gap, but only if the tools are easy to use, trustworthy, and inclusive. If employees don’t understand it or trust it, they still won’t use it.

AI for Plan Design and Decision-Making

AI is also being used to inform how benefits plans are built. It can flag underused benefits by analyzing claims data, model cost trends and project future spend, recommend changes based on health population data, and personalize options by location, age, or role.

This can be helpful, but also easy to misinterpret. One survey shows that while 52 per cent of HR leaders are exploring AI tools, only 21 per cent feel confident reading or validating the results.

AI should support decisions, not make them. A tool might suggest cutting massage therapy due to low claims, but your team might not be using it because access is poor, not because of lack of interest.

AI Chatbots and Self-Serve Tools

Employees are seeing AI most clearly in the form of chatbots and digital dashboards. These chatbots can now ask coverage questions anytime, navigate claims more easily, compare options or estimate costs in real time, and search benefits information quickly without calling HR. 

Nearly three-quarters of Canadian employees want clearer, more transparent benefits information, and over half prefer digital access.

Make sure these tools work as promised. If the chatbot gives wrong answers or can’t escalate to a person, you’re creating frustration instead of solving it. 

The Privacy and Ethics Side of AI

There’s no avoiding it. AI raises privacy concerns, especially when it touches health or demographic data.

Here are some smart questions employers should ask:

• Where is the data stored?
• Who owns the data? The insurer, the tech vendor, or you?
• Can the AI-powered tool explain its logic? Can you audit it?
• Can employees opt out of personalization?

Trust matters more than technology. 

Nearly two-thirds of Canadians are uncomfortable with AI making decisions about their health, even if the data is anonymous. And those working in HR and employee benefits aren’t as thrilled about AI as other teams. Only about half say they feel positive about tools like generative AI.

If employees don’t feel safe, they won’t engage. Make privacy part of your vendor checklist.

How to Evaluate AI and Tech Tools

You don’t need to dive into everything at once. We guide our clients with a simple approach:

• Start with the goal. Are you solving for cost, access, equity, or engagement?
• Check the results. Does the tool have a proven track record?
• Ask for transparency. You should be able to explain how it works.
• Pilot first. Don’t go all-in before testing it with a small group. 

Most importantly, ask your team members. No AI tool can replace honest feedback from your employees.

The Future of Employee Benefits

Adopting new technology doesn’t mean letting go of sound judgment.

At Prime Benefits Group, we can help you cut through the noise so you can implement the tools that work for your team, and skip the ones that don’t.

Looking for support with evaluating technology and AI in your benefits offerings?

Reach out at info@primebenefitsgroup.com or visit www.primebenefitsgroup.com. 

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