Three-fifths (58%) of employers are currently using insights from artificial intelligence (AI) to personalise benefits recommendations, according to research by Mercer Marsh Benefits.
Its Future of benefits technology survey, which surveyed 400 employers across the world, and more than 3,000 employees from Brazil, Canada, China, France, Germany, the UK, India, Italy, Mexico, and Singapore, also found that employers are increasingly adopting centralised benefits platforms to streamline operations, reduce complexity, and improve data utilisation. Additionally, the research revealed a growing demand for personalised benefits tailored to the diverse needs of employees, especially across different generations.
More than half (56%) of employer respondents said they are currently using insights from AI to better understand the mental wellbeing and physical health needs of their workforce, and 89% have already centralised their benefits to improve data utilisation, or plan to do so within the year.
While 71% of employee respondents said they feel their benefits experience is relevant, 52% admitted that they still have unmet needs.
Furthermore, 46% of employees between the ages of 18 and 35 years have expressed interest in building their own benefits packages, and 38% want to receive tailored content based on life events.
The research also highlighted that the use of AI in benefits technology is increasing, particularly to support enhanced analytics, personalisation, and early detection of employee burnout.
Half (50%) of employers said they are currently using AI, and nearly all are planning to implement it soon.
Helen Sharpless-Willis, partner and MMB multinational Darwin commercial leader at Mercer Marsh Benefits, said: “Employers have the opportunity to transform how they deliver employee benefits to their workforce with technology. In fact, our survey finds that more than half are already using AI to personalise benefits. By utilising centralisation and personalisation strategies with AI, employers can keep pace with employees’ benefit needs and boost employee satisfaction, wellbeing, and engagement.”
