Artificial intelligence is not just for tech headlines. It’s transforming many of our business practices, and employee benefit plan administration is no exception. AI has caught the eye of state lawmakers, federal regulators, and ERISA litigators, leading to new laws and guidance, which are reshaping plans and fiduciary oversight. Whether you already work with a fiduciary or not, you need to be sure your company is remaining compliant and prepared.
Recent state laws in California, Illinois, and Colorado now regulate certain AI uses in HR and healthcare decision making. Federal agencies, like the Department of Health & Human Services, have issued new guidelines to prevent discrimination in AI-driven healthcare. At the same time, AI tools are being used to identify potential breaches, including in health and welfare plans. It’s an odd circle: AI is both running plans and investigating them.
But this can mean a couple things:
- More scrutiny on plans and fiduciaries: AI can be used to find patterns of bias or errors in plan operations.
- More responsibility added to HR plates: Fiduciaries must ensure AI tools, and the vendors who use them, meet new privacy and compliance standards.
Ask yourself, or your leadership, what is in place today? Auditing vendors, updating governance policies, monitoring legal developments, documenting due diligence? There’s no slow down in sight; fiduciaries who act now can reduce risk for employers. In fact, as fiduciaries, it’s our job to stay ahead of these changes for you.
Read more about the recent regulation.
