This three-part series on AI & REGTECH has been created by the data scientists and benefits specialists at BENEFITSCAPE to provide a high-level framework for understanding how AI can support ben admin and compliance.
In this final post, we sum up the key takeaways for employers from Parts 1 & 2.
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1. AI comes with its own compliance risks — from data security and privacy regulations to intellectual property issues. Make sure your company and service providers understand and follow the NIST AI Risk Management Framework (AI RMF). If in any doubt, ask BENEFITSCAPE to audit your use of AI.
2. AI is a broad category of technologies — one size does not fit all tasks. Make sure you and your service providers understand both AI and benefits — to match, train, and deploy the right engines for different ben admin and compliance tasks.
3. For compliance purposes, so-called ‘weak’ AI = accurate and reliable AI. In other words, AI engines need to be trained and optimized for specific tasks. ‘Strong’ AI is designed for more wide-ranging, open-ended, and seemingly human-like thinking.
4. Generative AI is suited to ‘softer’ ben admin support tasks — such as natural language Chatbots to help support employees. Gen AI ingests vast quantities of data to generate ‘new’ content [text, images, video, audio etc.].
5. Discriminative AI is suited to compliance tasks. For example, correctly trained and configured, Discriminative AI can be used to flag errors and suspicious irregularities or anomalies in complex compliance data. BENEFITSCAPE ACA_REGTECH* runs intelligent Flag & Fix diagnostics on ACA reporting & compliance data.
6. Sometimes rules are just rules — and AI is simply not needed. Also remember AI is a tool not a universal, plug-and-play autonomous solution. Human benefits expertise is still always needed and the ultimate risk and compliance safeguard.
7. The IRS has its own well-trained AI engines and has recruited an army of data scientists to run diagnostics on complex tax filings. This has raised the compliance bar for corporate employers.
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BENEFITSCAPE was founded in 2014 by CEO Kim Phillips to bring together leading expertise in both ben admin and new technologies, including the pioneering use of intelligent new regtech. Today the company has a proven track record in delivering best-in-class ben admin and compliance services for 1000s of employers on all HCMs.
To learn how AI-assisted regtech services can transform ben admin and compliance for your company, or for advice on your company’s own use of AI, email BENEFITSCAPE at info@benefitscape.com or call +1-508-655-3307.
