Seven in 10 SME leaders are now using AI tools like ChatGPT to shape their employee benefits strategies, according to independent insurance broker Lockton.
According to its report, ‘From Gut-Feel to Data-Driven: Overcoming Blind Spots in SME Benefits Strategy’, 77 per cent of frequent AI users admit to feeling guilty about whether their benefits strategy is doing enough to support staff, either “all the time” or “sometimes.” Leaders are also more likely to see their approach as inadequate, with 40 per cent saying their benefits package needs significant improvement, compared with just 9 per cent of leaders who have never used AI.
Around 61 per cent of leaders say staff feedback would give them the clarity and confidence they need, while 41 per cent say practical tools and 39 per cent cite trusted advisers.
The report also reveals that most benefits decisions remain reactive and based on personal experience rather than data. Around three-quarters admit their choices are influenced more by their own or other leaders’ experiences than by staff feedback or performance metrics.
Around 94 per cent of SME leaders say they feel somewhat comfortable responding to employee requests, fewer than half, 46 per cent, are very confident in their long-term benefits strategy.
Only 39 per cent feel able to act independently without external guidance, with 31 per cent citing conflicting advice, 31 per cent citing time pressures, and 29 per cent citing fear of mistakes as key barriers to proactive planning.
Lockton head of SME Consulting & Production Stewart Waddy says: “AI isn’t the problem. SMEs want to do right by their employees, but this also creates pressure to get things right. Without clear guidance, leaders will continue to carry the burden alone – risking decisions that are reactive, inconsistent, or clouded by guilt.
“From working with our SME clients, we’ve seen first-hand that with the right support they can build effective, long-term strategies. Right now, though, many are leaning on AI as a digital safety net but it can only do so much. What feels like efficiency can easily deliver short-term fixes that fail to address employees’ real needs. It can’t replace the tailored advice and planning needed to build benefits strategies that truly support employees and their businesses.
“Providing compelling, inclusive employee benefits doesn’t have to be about spend. It’s about strategy, alignment, and visibility. SMEs are nimble – unlike larger corporates, they can move quickly to build proactive strategies that adapt to their people’s needs. If they succeed, they won’t just avoid wasted spend, they will build workplaces where benefits genuinely deliver on their promise of showing people they are valued.”