Groom principal David Levine, co-chair of the firm’s Employers & Sponsors group, was quoted by Law 360 in the article, “3 Atty Takeaways On How AI Affects Employee Benefits,” where he explored the use of Artificial Intelligence (“AI”) in employee benefits administration.
“AI is evolutionary. It can make it easier to audit—you already automate nondiscrimination testing, you already automate a lot of things—this is another level of automation,” said Levine, referencing testing required by the Internal Revenue Service (“IRS”).
“But is it the be-all, end-all? No, it’s another wonderful tool,” Levine said.
According to Law360, Levine added that, in terms of the practical uses of AI, “a data field on the Form 5500 Schedule C, which provides information on service provider compensation, might generate results that indicate high per-participant cost that could be misleading.” The platform further noted that he said that “Schedule C has a slew of subcodes: ‘Some of it could be recordkeeping fees, but a portion of it could be other fees. But that all gets lumped together sometimes.’”
“So, if someone looks at the 5500 with machine learning … it might allow you to say, hey, we see overall fees at a certain level, but it doesn’t tell you what’s wrong or right,” he said.
The platform reported that Levine said that “because large language models can now import documents and other materials, a question that comes up frequently is, ‘You’re going to train on my data. What does that mean? What happens with it?’”
“There’s a lot of questions about data security, privacy, all these things that remain there,” Levine added.
To read the article, click here.
