Your employees are already using AI for retirement and financial decisions, often without telling anyone. Surveys show strong adoption and a real downside: most people who acted on AI financial advice felt the results were poor. For HR and benefits leaders, the opportunity isn’t to block AI. It’s to put it in context so employees use it alongside the plan’s real resources, not instead of them.
How many employees are actually using AI for money decisions?
A lot, and the number is climbing. A Credit Karma survey found finance is now a top AI use case at 41%, just behind health and wellness at 44%. An Empower study found that, year over year, nearly half (47%) of Americans feel more comfortable using AI for personal finance. They’re turning to AI for retirement planning recommendations (56%), debt consolidation advice (58%), and budgeting help (54%).
Is the advice actually helping them?
Not always. Among Credit Karma respondents who used AI for financial advice, 85% reported taking action based on it. But more than half of that group said those decisions ultimately resulted in what they considered poor outcomes. The tools are accessible and judgment-free, which is part of the appeal, but accessibility isn’t the same as accuracy.
Do employees still want human guidance?
Yes. Most people treat AI as a starting point, not the final word. Eight in ten Credit Karma respondents said they do additional research and validate advice before acting. Among Empower respondents, 62% emphasized the value of human input for important decisions like investing, and 61% said they’d use AI alongside human financial advice to get better results.
What about privacy?
Privacy is the easiest place for HR to make an immediate difference. Experts caution against entering sensitive or personally identifiable data, such as account numbers and Social Security numbers, into AI tools. They also advise against sharing specific income and balance figures, and suggest using general ranges instead.
What can HR and benefits leaders do?
You don’t need an AI policy to make a difference. A few practical moves:
- Acknowledge that employees are using AI and educate them on the risk of misinformation.
- Remind employees not to enter personal or account data into AI tools.
- Refresh participant communications to answer the AI questions employees are already asking.
- Promote the fiduciary resources and advisor access available through the plan.
The takeaway
AI isn’t going away, and for a benefits leader that’s an opening, not a threat. When you frame AI as one tool among several and keep your plan’s human resources visible and accessible, you help employees make better decisions and reduce the friction that lands on your desk.
To refresh your participant communications around AI and financial wellness, or to talk through your employee education strategy, let’s talk. You can also reach Advo(k)ate Advisors at 866-608-8650.