How will the tech improve my customer retention rate? (Photo: iStock)
HR and benefits teams are operating in a high-stakes environment: operational demands are intensifying, employee expectations are evolving, and administrative capacity remains limited. Amid these pressures, benefits leaders are being asked to deliver more — more clarity, more personalization, and more value — with fewer resources.
Artificial intelligence (AI) is emerging as a critical enabler. When deployed thoughtfully, AI doesn’t just automate, it empowers better decisions, richer experiences, and stronger outcomes for both employees and employers.
Where we are: automation is the starting line, not the finish
According to SHRM’s 2025 State of the Workplace report, nearly half of HR departments are now using AI tools to support operations such as benefits enrollment, claims handling, and compliance workflows. Yet most are still early in their adoption journey focused more on automation than transformation.
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That’s an important distinction. Automation clears administrative bottlenecks. But the true opportunity lies in building intelligent systems that anticipate needs, adapt in real time, and continuously learn. For the benefit leaders, this shift means moving from chasing forms to shaping strategies, experiences, and measuring impact.
And the momentum is accelerating. SHRM’s latest CHRO Priorities and Perspectives report found that 83% of senior HR leaders expect AI to play a larger role in HR by 2025. From benefits to workforce planning, the charge is clear: don’t just do things faster — do them smarter.
Where we’re headed: from process automation to value capture
At WEX, we’ve seen firsthand how AI can drive meaningful change in benefits administration by reducing friction and elevating engagement. Some of the clearest gains have come from addressing long-standing pain points:
- Guided enrollment experiences. AI surfaces plan recommendations based on life events, personal goals, and usage patterns. That helps employees choose the right benefits with more confidence and reduces strain on HR teams during open enrollment.
- Real-time issue resolution. AI agents can now intercept a declined card transaction, notify the member why it happened, and resolve the issue, including reactivating the card, without a phone call or manual intervention.
- Claims automation with feedback loops. When members submit a photo of a receipt, AI can instantly validate the details or request missing documentation. That means fewer denials, faster processing, and better member satisfaction.
- Actionable insights for HR teams. Aggregated, de-identified data allows HR leaders to see what benefits are underused, what support gaps exist, and where to adjust communications or plan design, all in near real time.
- These are more than efficiency gains — they represent a shift toward embedded intelligence across the benefits ecosystem.
What it takes: building alignment, trust, and momentum
AI can’t be a bolt-on solution, especially in a space like benefits, where trust, privacy, and clarity are paramount. Successful integration requires strategic alignment, cross-functional collaboration, and a firm commitment to responsible innovation.
Some lessons we’ve learned:
- Anchor to real pain points. Start with the processes that cause frustration for employees and overhead for HR. That’s where AI can demonstrate value quickly and build momentum.
- Build guardrails from day one. Work with legal, compliance, and security teams to ensure your use of AI protects data and aligns with evolving governance standards.
- Invest in AI literacy. Your teams need time and support to build comfort with new tools. That includes training, documentation, and space to experiment.
- Measure the right things. It’s not just about time savings. Track improvements in engagement, issue resolution, and benefit utilization to understand the full picture of AI’s impact.
Looking ahead: AI as a strategic differentiator
The organizations that will continue to thrive in 2025 and beyond are those that don’t just integrate AI, they use it to elevate the employee experience. For benefits leaders, that means shifting from a mindset of value efficiency and scale to insight, personalization, clarity, and impact.
Done right, AI allows us to deliver more human-centered service, not less. It helps people make better decisions. It removes guesswork. And it frees up time and energy for HR leaders to focus on what matters most: supporting people and driving results.
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