Artificial intelligence and cognitive computing are remaking corporate America, but are they having a similar impact in the other disciplines of HR? In one specific area of HR, employee financial wellness programs, AI and cognitive computing have the potential to ignite a revolution, writes Marthin De Beer, CEO, BrightPlan.
But is AI having a similar impact in the other disciplines of HR? In one specific area of HR, employee financial wellness programs, AI and cognitive computing have the potential to ignite a revolution.
A Better Way
Employee Financial Wellness is an important new employee benefit that is not well understood and often poorly implemented. Some provide education only without measurable, actionable next steps that lead to a secure retirement. Others provide advice with inherent conflicts of interest.
However, AI and cognitive computing now make it cost-effective and scalable to offer employees completely customized financial plans and personalized advice that gets smarter and better over time. The more an employee uses the features of an AI-powered financial wellness platform, the more valuable the user experience. The intelligence in the platform builds on itself.
Importantly, a financial wellness program built with AI and cognitive computing can also help with a new, increasingly accepted priority: Making sure employers are serving the interests of all their stakeholders. In August, the Business Roundtable issued a “Statement on the Purpose of a Corporation,” which calls on corporate America to be concerned not only with their shareholders but with all of their stakeholders, including employees, customers, vendors, and communities. Financial wellness for employees is a high-impact way to respond to that challenge.
The Power of Advanced Technology
AI and cognitive computing can fundamentally reshape financial wellness programs for at least three key reasons.
First, both technologies make it possible to offer customized advice to employees with vastly different needs. Millennials grappling with student loan debt and a mortgage need different advice from Baby Boomers trying to finance an adult child’s college education and achieve financial security. AI and cognitive computing can provide personalized recommendations and advice based on each individual’s unique circumstances. As important, the technology can adjust in real-time. If the stock market gyrates or an employee experiences a major life change, such as a marriage or a new child, the technology can quickly adapt and recommend new strategies and tactics.