Employers Embrace AI for Benefits — Employees Remain Cautious

New Prudential study shows employers are far more confident than employees in using artificial intelligence to improve the workplace benefits experience

NEWARK, N.J.--(BUSINESS WIRE)--Prudential Financial, Inc. (NYSE: PRU) released a new study today showing how employer optimism about artificial intelligence in the workplace benefits experience is outpacing employee willingness to use these tools for benefits-related support.

The second installment of Prudential’s 2026 Benefits & Beyond study reveals that more than 8 in 10 employers (83%) are interested in using AI to help workers better understand their benefits, but only 58% of employees say they would use AI for this purpose, and just 24% say they do so today.

“AI can make benefits simpler, more personalized and easier to use, but employees won’t embrace it unless they trust it,” said Michael Estep, president of Prudential Group Insurance. “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.”

Estep added that benefits may be one of the most practical places to build confidence in AI, helping employees navigate complex decisions with more clarity and support.

The study also found a broader perception gap around AI: while 78% of employers view it positively, only about half of employees (51%) agree. That 27-point difference could slow adoption of AI‑powered benefits tools unless employers do more to build understanding and trust.

Key findings from the study, “The Future of Work: Navigating rapid AI adoption while building employee trust,” include:

• Trust and privacy are the biggest barriers. While both employers and employees cite privacy and security as top concerns (49% and 52%, respectively), employees are twice as likely to say they simply don’t trust AI (25% vs. 12%) in general. Concerns about inaccuracy, moral/ethical issues and job loss are also more pronounced among employees.
• Adoption varies by workforce segment. Forty percent of unionized employees, 27% of salaried employees, and 27% of sole decision-makers already use AI for benefits guidance, compared to lower rates among their peers.
• Employees are open to sharing data for personalization. Sixty-five percent of employees are comfortable with their employer managing their personal data for benefits purposes, rising to 75% among employees in technology-related roles.

Looking back at Prudential’s 2024 Benefits & Beyond study, nearly 7 in 10 employees said they wanted more personalized support during open enrollment, and about 9 in 10 were willing to share personal information — such as age, health status, tobacco use and family history — to receive tailored benefits recommendations. Now, AI has the potential to deliver that level of personalization, but trust in how the technology is used remains a critical variable.

As organizations look to close the gap between employer enthusiasm for AI and employee confidence in AI, the research underscores the need for clear communication and hands-on education.

“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, Prudential Group Insurance. “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.”

Click here to view and download the study. Visit prudential.com/employers/group-insurance for more information on Prudential Group Insurance’s portfolio of workplace benefits, absence management and risk mitigation solutions.

The research was conducted with 3,096 full-time U.S. employees and 760 employers via national online surveys in January 2026.

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ABOUT PRUDENTIAL

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.6 trillion in assets under management as of March 31, 2026, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for more than 150 years. For more information, please visit news.prudential.com.

Prudential Group Insurance manufactures and distributes a full range of group life, long-term and short-term disability, and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use within employee and membership benefits plans. The business also sells critical illness, accidental death and dismemberment, and other ancillary coverages. In addition, the business provides plan administrative services in connection with its insurance coverages, and administrative services for employee-paid and unpaid leave including FMLA, ADA and PFL.