Brokers Increase AI Use as Compliance Demands Grow

Artificial intelligence is becoming a central tool for brokers adapting to a more complex advisory environment. According to the 2026 “Emerging Trends for Brokers” report by iSolved, a provider of human capital management software and services that works with benefits brokers, 58% of brokerage professionals say demand for compliance support is growing as employers face mounting regulatory scrutiny and operational strain. Regulatory requirements tied to ERISA, COBRA and FMLA remain immediate concerns, while rising health care costs and expanding data privacy rules represent longer-term strategic challenges.

The two compliance concerns most cited by respondents were the Employee Retirement Income Security Act (57%) followed by COBRA [Consolidated Omnibus Budget Reconciliation Act] health care coverage (51%). A minority of respondents cited the Family and Medical Leave Act (47%), the Affordable Care Act (43%), Mental Health Parity and Addiction Equity Act (38%) and prescription drug data collection (16%).

Need for Compliance Monitoring

Nearly two-thirds (64%) of responding brokers said AI is improving compliance tracking and reporting, underscoring how benefits brokers who use AI to anticipate client needs and deliver faster, more personalized guidance are more likely to stand out as trusted advisers in 2026. Rather than relying solely on manual audits and periodic reviews, firms are increasingly incorporating automation into day-to-day compliance workflows.

The pace of regulatory change is a key driver. Automation tools are helping firms continuously monitor updates, flag potential risks in real time and generate documentation more efficiently than traditional processes.

At the same time, compliance expertise itself is emerging as a major differentiator, as firms that use AI can more quickly interpret regulatory shifts, assess their operational impact and translate them into clear action steps for clients.

Expanding Expectations Beyond Benefits

Client expectations are also expanding. Of surveyed brokers, 93% said organizations now seek support beyond traditional benefits administration. Respondents said employers increasingly want connected guidance that brings together compliance, AI strategy, human capital management technology and workforce planning to improve the overall employee experience. This broader mandate is reshaping the broker role from transactional support to strategic partner, according to the report.

Economic uncertainty adds another layer to these shifts. Benefits brokers reported increased demand for scenario planning, cost modeling and long-term workforce strategy to navigate budget constraints, hiring slowdowns and rising health care costs. Firms that invest in technology early—particularly AI-enabled tools that improve efficiency and visibility—are positioning themselves to capture new growth opportunities while strengthening client relationships.

Balancing Automation, Advisory Expertise

AI adoption is already widespread. Among surveyed brokers, 85% reported using or exploring it, most often for automated compliance monitoring and financial wellness planning. Many also reported measurable operational gains, including streamlined processes, improved employee engagement and more efficient hiring workflows.

Still, 55% of brokers said AI has limitations in handling more nuanced or sensitive HR matters, such as employee relations or complex leave situations. As a result, respondents said they were applying it selectively. Automation supports monitoring, reporting and data analysis, while advisers can focus on interpretation, strategic planning and relationship management—areas where judgment and experience remain critical.

Looking ahead, the report suggested that in 2026, brokers who combine deep compliance expertise with AI-enabled insight while maintaining a strong advisory presence will be best positioned to meet evolving client expectations and compete in a more technology-driven market.

The Emerging Trends for Brokers report was based on a July 2025 survey of 200 U.S. brokerage professionals and was part of iSolved’s broader advisory services research, which surveyed 1,000 advisers across five industries.