Employers More Confident in AI Benefits Tech Than Employees

Employer enthusiasm for artificial intelligence is outpacing employee willingness to use the technology for benefits support. The second installment of Prudential Financial Inc.’s 2026 Benefits & Beyond study found that 83% of employers surveyed were interested in using AI to help workers better understand their benefits. Only 58% of employees surveyed said they would use AI for that purpose, and just 24% said they were currently doing so.

The findings highlight a persistent trust gap, even as employers look to AI to improve their participants’ engagement with increasingly complex benefits offerings. While both surveyed employers (49%) and employees (52%) cited privacy and security as top concerns, employees were twice as likely as employers to say they simply did not trust AI (25% vs. 12%). Workers also expressed heightened concern about inaccuracy, ethical issues and job loss, with 27% of employees reporting concern about the ethics of AI and 16% expressing fear it will take over their job.

This skepticism varied significantly by demographic group. Both Generation X respondents (35%) and Baby Boomers (30%) reported a significant lack of trust in AI. Furthermore, 56% of Gen Xers and 59% of Baby Boomers were more likely to be concerned about privacy and security. Millennials were the most likely to report having no concerns or fears around AI, at 15%, while Generation Z employees were more likely to point to environmental concerns (29%), such as the impact of data centers.

Despite these concerns, some segments of the workforce were already incorporating AI into benefits decisionmaking. Prudential found that 40% of unionized employees surveyed, as well as 27% of both salaried workers and employees who were sole decisionmakers for benefits, used AI-driven tools for guidance.

At the same time, there were signs that employees may be open to more personalized, data-driven support if trust barriers are addressed: 65% of surveyed employees said they were comfortable with their employer managing their personal data for benefits purposes, a figure that rose to 75% among those in technology-related roles.

Previous Prudential research suggested a strong appetite for personalization. In the firm’s 2024 Benefits & Beyond study, nearly 70% of employees said they wanted more tailored support during open enrollment, and roughly 90% indicated they would be willing to share personal information, such as age, health status and family history, to receive customized recommendations.

“Employee benefits is one of the clearest applications for AI, given how complex and individual these decisions can be,” said Scott Roth, vice president and chief technology officer of Prudential Group Insurance, in a statement. “Many employees still struggle to navigate their benefits options. AI can help simplify that, but they need confidence in the guidance they receive and how their information is handled. When that trust is in place, it can drive stronger engagement and better outcomes.”

The Prudential study surveyed 3,096 full-time U.S. employees and 760 employers via national online surveys conducted in January.

Compliance Challenges

Separate research from Global Relay Communications Inc., a technology services company, suggested that concerns about trust, oversight and data governance are not limited to the workplace benefits arena. In a multi-regional survey of 119 business professionals conducted from January through May, 54% of surveyed organizations that were not using AI for compliance said they planned to introduce it within the next year.

Forty-four percent of respondents identified AI as the biggest compliance challenge facing firms by 2027. However, respondents—of whom 61% were compliance workers—were divided on the regulatory path forward. Nearly half (45%) called for more AI regulation, and 41% preferred greater clarity of existing regulations.

Regional differences also emerged, with North American firms citing data privacy as the top barrier to adoption (57%), while firms in Europe, the Middle East and Africa pointed to a lack of regulatory clarity (42%).

Taken together, the findings underscored how organizations are moving quickly to adopt AI across functions, including employee benefits, but challenges such as trust, transparency and governance continue to shape how quickly workers are willing to embrace the technology.

“AI can make benefits simpler, more personalized and easier to use, but employees won’t embrace it unless they trust it,” said Michael Estep, the president of Prudential Group Insurance, in a statement. “That means helping people understand how these tools work, how their data is protected and how AI can strengthen the human support they still want and need when making important benefits decisions.”