Artificial intelligence technology has the potential to improve employee benefits administration and could even help employers and retirement savers avoid underperforming 401(k) investments, attorneys say.
But employers and their attorneys face a host of other issues with AI as the technology that enables machines to learn from experience gains a foothold in the employee benefits industry, including potentially significant cybersecurity risks involved with so much new data.
"AI is evolutionary. It can make it easier to audit — you already automate nondiscrimination testing, you already automate a lot of things — this is another level of automation," said David Levine, co-chair of Groom Law Group's employers and sponsors group. Levine refers to testing on benefits nondiscrimination that is required by the Internal Revenue Service to ensure programs don't favor highly compensated employees.
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