New research by Conduent Incorporated, based in Florham Park, has highlighted the challenges employers face as they attempt to manage rising healthcare costs while meeting employee demands for comprehensive and personalized benefits. The 2026 Blueprint for Smarter Health Survey indicates that many human resources departments now see artificial intelligence (AI) as a necessary tool to address these issues.
The survey found that 69% of employers anticipate medical trend rates above 7%, suggesting a pressing need for more effective cost management. At the same time, 65% of employers measure the success of their benefits programs by their ability to attract and retain talent, showing the importance of benefits in broader talent strategies.
Adoption of AI is increasing, with 71% of organizations using AI-driven tools to assist employees in selecting benefit options. Additionally, 64% plan to offer virtual assistants to help staff navigate their benefits.
HR leaders are treating benefits as strategic assets tied closely to business objectives such as recruitment and retention. Meanwhile, employee expectations are also rising; mental health and wellness programs are now a top priority for 65% of employees.
Organizations continue to struggle with balancing these growing expectations against escalating costs. According to the Business Group on Health, cumulative annual increases could result in healthcare costs being 62% higher in 2026 than they were in 2017. For an employer with 10,000 workers, this could mean approximately $5 million more spent each year on health benefits compared to previous averages.
Conduent is working with clients across various industries to use data analysis, automation, and AI not only to control spending but also to improve employee engagement with their benefits offerings.
“Healthcare costs will continue to rise, and organizations must balance cost containment with the need to provide comprehensive health and wellness benefits,” said Kimberly Marshall, chief commercial officer of commercial solutions at Conduent. “Clients are demanding advanced technology solutions that harness the power of AI to both empower employees to better utilize their benefits and help HR teams to manage benefit program operations more efficiently and cost-effectively. Our Life@Work Connect Experience platform delivers richer employee understanding of complex benefit information, helping maximize benefits usage, and support cost savings.”
AI is evolving from a support function into a central component guiding decisions about employee benefits, streamlining administrative processes, and providing greater transparency around medical expenses. Conduent’s Life@Work Connect Experience platform brings together data related to health plans, retirement savings, and wellness initiatives so employees receive tailored recommendations—from choosing optimal health plans to managing healthcare expenditures effectively.
The platform features an AI-powered virtual assistant called Conni. This assistant compiles data from multiple sources and offers interactive content along with educational materials designed to help employees make informed decisions throughout the year.
Conni also generates insights regarding how employees interact with AI tools, trends in enrollment or usage patterns, and overall performance metrics—information that can help employers identify effective practices or eliminate unnecessary spending.
A summary report is available here: 2026 Blueprint for Smarter Health Survey
