AI Trust Issues in Employee Benefits: Bridging the Gap

A new study from Prudential Financial reveals a paradox simmering in the modern American workplace. Employers are eager to harness artificial intelligence, with 83% wanting to use it for employee benefits guidance. Yet, only 58% of employees say they would actually use it. This twenty-five-point gap isn’t just a technology problem. It’s a human one. According to Scott Roth, vice president and chief technology officer of Prudential Group Insurance, the core issue is trust. “Our research suggests this is less a technology adoption challenge and more a trust challenge,” Roth told Insurance Business America. “Employees are already using AI in their daily lives and increasingly for financial, health, and benefits-related decisions, but confidence in the technology hasn’t kept pace with adoption.”

The data, drawn from Prudential’s 2026 Benefits & Beyond study, paints a detailed picture of this dissonance. The survey of over 3,000 full-time U.S. employees and 760 employers highlights a cultural infrastructure straining under the pace of technological change. While 78% of employers view AI positively, only about half of employees share that sentiment – a stark 27-point chasm. Distrust is more pronounced on the employee side, with one in four expressing skepticism compared to just 12% of employers. Privacy and security concerns top the list for workers, cited by 52%, slightly edging out worries about accuracy and reliability (49%). This anxiety manifests in usage: only 24% of employees currently use AI for benefits guidance, despite its growing availability.

What’s fascinating is that employers aren’t blind to the risks. Among those with concerns, 40% named the risk of sharing employees’ personally identifiable information as their top worry. The enthusiasm is there, but so is a recognition of the stakes. For Roth, closing this gap isn’t a passive exercise. “Trust is a shared responsibility,” he emphasizes. “Employers, benefits providers, brokers, and technology partners all have a role to play in helping employees understand how AI is being used and how their information is protected. Organizations cannot assume trust will develop automatically.”

One of the study’s most counterintuitive findings offers a clue to the solution. Unionized employees are significantly more likely to use AI for benefits guidance than their salaried counterparts (40% versus 27%). Roth sees a cultural explanation. “In many union environments, there is already a strong culture of helping members understand their coverage, navigate benefits questions, and advocate for their needs,” he notes. “Tools that make information more accessible and easier to navigate may naturally resonate with those employees.” This isn’t about technophobia. It’s about utility. Employees aren’t rejecting AI on principle; they’re seeking tools that genuinely aid decision-making. The data supports this: 65% of employees are comfortable letting employers manage their personal data for benefits purposes, a figure that jumps to 75% among those in technology roles. The willingness to share exists when the value exchange is clear. “Employees are increasingly open to sharing information if it helps them receive more relevant guidance and support,” Roth observes. “But personalization and trust need to go hand in hand.”

So, what does effective, trustworthy AI-powered guidance look like? Roth is unequivocal: it should augment human judgment, not replace it. The goal is to remove friction from a notoriously complex and personal process. Whether an employee is evaluating options during open enrollment or planning for a major life event, good AI should make guidance more accessible, timely, and relevant. “Benefits decisions are complex and highly personal, which makes them one of the clearest applications for AI,” he says. At Prudential, this philosophy centers on strong standards for privacy, transparency, and responsible data use. It’s a model gaining traction across the industry, where the aim is to leverage tools for better client outcomes while keeping human expertise—and ethics—firmly in the loop.

This shift also redefines, rather than diminishes, the role of the benefits broker. As AI becomes a common starting point for employee research, Roth sees brokers evolving into strategic guides. “AI has the potential to streamline routine and administrative activities, allowing brokers to focus even more on strategic guidance and client relationships,” he explains. Their value will lie in helping employers evaluate new solutions, navigate implementation, and balance innovation with trust. The opportunity isn’t to compete with technology, but to wield it to deliver greater, more personalized value.

When asked what single factor is most critical for AI in benefits to reach its full potential, Roth’s answer is immediate and singular: “Trust.” He concludes, “Our research shows employee adoption of AI is already happening, but confidence in the technology is still catching up. For AI to reach its full potential, employees need to trust that their information is protected, that recommendations are accurate, and that the technology is being used responsibly.” The path forward requires leading with transparency, investing in education, and demonstrably protecting data. “Trust is what transforms AI from a promising technology into a tool employees are willing to rely on for important decisions.” The appetite for AI-driven guidance is undeniable. Bridging the trust gap, however, remains the definitive business challenge of this adoption cycle. Those who master this human element will find themselves leading the next major shift in how we work and live.

• 83% of employers want to use AI for employee benefits guidance
• Only 58% of employees say they would actually use it
• 40% of employers named the risk of sharing personally identifiable information as their top worry
• 65% of employees are comfortable letting employers manage their personal data for benefits purposes
• Unionized employees are more likely to use AI for benefits guidance (40% vs 27%)
• Trust is the most critical factor for AI in benefits to reach its full potential