Real Versus Artificial Intelligence in Employee Benefits

By Dan Eisner, Employee Benefits Advisor

There is lots of talk and hype about Artificial Intelligence (AI) and the role it will play in broader society going forward, as well as its role in the employee benefits industry. AI typically refers to technology that enables computers to perform tasks that typically require human intelligence, such as reasoning, learning, decision-making, and perception. However, at this point, it seems like the definition of what AI actually is, or could be, is evolving.

Generative AI chatbots (e.g., ChatGPT, Claude, Perplexity, Copilot and Gemini) use patterns learned from large amounts of information available on the Web to make connections, synthesize ideas and generate responses to users’ questions. Unlike traditional old-fashioned search engines, chatbots can generate human-like conversational responses and allow users to refine and steer responses towards a desired length, format, style, level of detail, and language. Logistically AI is still like an internet search, but it can interpret information and generate a response in a different way.

So, what happens when we test out AI and ask multiple chatbots a question about something related to employee benefits, like the average annual cost of an employee benefits program in Canada. The initial results needed some refinement as the chatbots interpreted “employee benefits” to include other things, like government program costs and group retirement plan costs. With some refinement to focus the search on only group benefits plan costs (i.e., Life, Disability, Extended Health, Dental), here is what we discovered:

• Vague findings – The chatbots provided ranges of 3% to 15% of payroll or $1,500 to $4,200, depending on whether it was a basic, standard, enhanced or comprehensive plan.
• Same reference documents – All chatbots seemed to be drawing from the same sources of information available on the internet, but interpretation of these documents can vary depending on the chatbot used.
• Less reliable sources – Unfortunately most of the better known and bona fide sources of data available in the employee benefits industry are not accessible to chatbots unless somebody posts the findings, which might involve copyright infringement. Chatbots may also pull from outdated sources which may no longer be relevant.

Based on our findings, when you are looking for a great recipe or want some advice around planning your next vacation, chatbots undoubtedly are there to help. However, you should be cautious, and likely skeptical, when asking a chatbot a question specifically around employee benefits programs and hoping for an accurate response. You should also be prepared to have to interpret the potentially wide-ranging and vague results and refine them yourself. And after all that, can you really trust the results? If not, how can you verify them? What are the implications if you are wrong?

Rather than asking a chatbot, why wouldn’t you simply ask your employee benefits advisor, assuming your advisor has the necessary experience, skills, knowledge and resources to provide a reliable, timely and personalized response?

A good advisor in the employee benefits industry looks to develop a deep understanding of their clients’ needs and proactively service their clients. That is one thing that technology, like Artificial Intelligence and chatbots, cannot do. In light of these types of technological developments, it is vital that advisors stay on top of the industry and continue to focus on client service in order to stay relevant and indispensable to those clients. Client relationships, when managed correctly, should not ever be replaced by technology.

At ZLC Employee Benefits Solutions we have one of the most experienced teams in the local market with over 500 years of employee benefits experience within our team of 23 professionals, so we know what we are doing in a relatively complex industry. We also have specialized skills around how underwriters and the broader employee benefits industry works. ZLC believes in the highest levels of client service and we provide direct, personal responses to assist our clients with their needs.

Based on what our team has to offer, we believe our clients benefit from real intelligence versus artificial intelligence, and our clients have the confidence that their advisor team can resolve issues and provide creative and practical solutions that AI simply cannot.

Should you have any questions about the above, please do not hesitate to contact me or any member of our team at ZLC Employee Benefits Solutions.

Most employee benefits advisors come from an insurance background, but Dan Eisner began his career as a CPA and now he has almost 25 years’ experience in the group benefits industry. This unique experience allows him to:

• Challenge the norms and historical practices in the employee benefits industry
• Facilitate better discussions between HR and Finance professionals
• Analyze benefits plans through a financial and risk-management lens
• Support CFOs and Finance teams with cost forecasting and sustainability modeling
• Align employee benefits strategy with long-term corporate goals and HR strategies
• Leverage the most experienced team in the industry at ZLC Employee Benefits Solutions

ZLC Employee Benefits Solutions is one of the fastest growing advisors for employee benefits and group retirement programs in Vancouver and we are fortunate to have the best people, resources, and clients. We provide value by leveraging one of the most skilled benefits teams – collectively over 500 years of experience within our team of 23 employee benefits specialists. We have been working with businesses ranging from 3 to over 75,000 plan members for over 40 years.