Government Workers Likelier to Incorporate AI in Retirement Strategies
Government employees who use artificial intelligence (AI) technology at work are more than twice as likely to incorporate it to retirement planning compared to those who don’t, finds new research today from MissionSquare research.
The report, “Artificial Intelligence in the Public Workforce: An In-Depth Study on Employee Perspectives and Retirement Planning Implications,” co-authored by Zhikun Liu, Ph.D., head of the MissionSquare Research Institute and researchers Eric Ludwig and Chet R. Bennetts, surveyed state and local government employees on how AI influences work productivity and retirement plan engagement.
The research found a distinct appreciation for AI tools among government employees, with nearly half (45.6%) using the technology in their current roles. Employees reported using the tool for writing assistance, document processing, data analysis, and customer service automation, among other actions.
Those who felt encouraged about AI integration reported higher workplace morale, at 86% whereas workers who voiced concerns regarding AI replacing their roles felt declining workplace satisfaction, at 21%.
The findings also show a potential shift in utilization with AI-focused financial planning products. According to the study, among employees who are comfortable using AI, 82% expressed interest in applying it for retirement planning and were likelier to believe that the tool boosts retirement preparedness.
When it comes to financial advice and guidance, those who frequently used AI said they felt better engaged with financial professionals, at 72% compared to 15% of those who don’t utilize the tool.
“Based on our research, a clear opportunity exists for employers and plan sponsors to leverage AI solutions to help improve employee job satisfaction and support their retirement planning needs,” said Liu. “However, understanding overall employee perspectives on AI adoption remains critical as success depends on tailoring approaches to meet the diverse needs of all individuals in one’s workforce.”
MissionSquare’s research includes recommendations for plan sponsors wanting to incorporate AI technology to their workplace and retirement plan benefits, while also assuring employees of their job status. This includes investing in communication and training to tackle job security concerns and comfortability in using the technology.
“Organizations should recognize that job security fears represent a fundamental barrier to successful AI integration and employee wellbeing, with effects that extend beyond individual satisfaction to broader organizational performance,” the research states.
Plan sponsors may also want to incorporate additional AI-powered tools like income estimation and financial goal tracking before moving onto more convoluted features, MissionSquare adds.
MissionSquare research surveyed 2,000 state and local government employees across the U.S.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
