Does AI Improve Productivity?

As artificial intelligence (AI) continues to dominate today’s headlines, one of the popular narratives around AI involves its use for improving workplace productivity. Early discussions about AI use appear to be promising; however, new data suggests otherwise for specific applications.

If you’re like many employers, you may be asking whether AI is right for your organization. Here are a few things to consider when making this decision:

Defining AI in Benefits Administration

AI is a buzzword carrying many meanings. So, what does AI mean for those in benefits administration? A Benify survey reveals that 43% of HR leaders currently use AI to streamline internal processes and reduce administrative tasks. In the same survey, 67% of employers utilizing AI in various ways – including live chat bots, paperwork automation, and curated benefit selections – report cost and resource savings.¹

On paper, this sounds too good to be true. The truth is, it is and it isn’t.

According to a HealthEquity survey – yes, it is true that 73% of benefits leaders believe AI will have a positive influence on benefits administration. Yet, further down the same survey, only 31% of employees say they feel knowledgeable about AI solutions.²A gap this large between enthusiasm and practical knowledge about AI could lead to a lack of technology adoption or costly misuses of data. How can employers help curb this possibility?

To curb this possibility, let’s focus on the pros and cons behind AI regarding productivity in the workplace.

AI 101

An effective way to make the most of this new technology is to understand it as a whole – its faults, its features, its advantages and areas of improvement. Possible perks could include:

Streamlining Solutions

Streamlining time-consuming tasks: Consider the time it takes for your benefits administrator to conduct and complete necessary, though mundane, tasks. How much time do you think your organization could save simply by streamlining these tasks into an automated system? Some of these innovations could include the hands-free organization of data and optimizing the time to complete processes. That way, your employees can better focus on the things that matter most to your organization.
Optimizing benefits experiences: Using data analytics from your AI software, you can create a benefits experience that caters to each employee in potentially less time. For example, this could include a quick predictive analysis of the benefits an employee may want to secure for next year.

Artificial intelligence cannot provide a one-size-fits-all solution for all organizations. For every pro there is a con, so it depends on what your organization is willing to optimize and why. Here are a few cons to consider:

Education and Security

Internal Training: With new technology comes fresh ways to modernize your workplace. Unfortunately, when it comes to AI, the learning curve may appear steeper depending on the employee. For example, six in 10 adults believe they’ll need to gain new skills to prepare for the impacts of artificial intelligence.³

A simple method for helping this adoption is to provide employees with educational resources on AI. This could include webinars, Lunch-and-Learn meetings, and free online materials. When people understand the use of a specific tool, they’re more likely to use it to its full potential.

Data Security and Privacy: AI is only as useful as the data that it’s given. That’s why dirty data – inaccurate, incomplete, or inconsistent information in an organization’s database – can be a costly obstacle you’ll want to avoid. In fact, estimates show that bad data costs organizations an average of $12.9 million per year.⁴

While streamlining processes can be effective ways to save money, doing so with unreliable data can cause confusion and keep your organization out of compliance. This is why it is still important to utilize personal oversight over these new technologies. Including peer review processes routinely in AI automations can help you stop bad data from leaving your door.

The Bottom Line With AI

Now that we’re aware of what’s happening with AI, what do we do with it? This next part requires some self-reflection on the employers’ side. If there is a practical use for this new technology, it’s encouraged to keep humans at the center of its operation. In short, it’s imperative for employers to ensure AI is a tool, not a replacement.

While additional education on AI tools may be necessary, the benefits behind an employee’s understanding of how to use AI cannot be understated. Production, in turn, may lag as the workplace continues efforts to adopt AI services in an inclusive manner. This will require employers like you to be intentional with your AI use.

For employers choosing to abstain from AI use, it remains important to keep abreast of this evolving technology. American Fidelity continues to monitor the evolving employee benefits landscape, including how AI can play a factor. Get your free guide on more ways to improve productivity and engagement in your workplace.

This blog is up to date as of November 2024 and has not been updated for changes in the law, administration or current events.