Alight Expands AI Collaboration With IBM to Advance Benefits Administration

ALIT
October 31, 2025

Alight announced a multi‑year partnership with IBM to deploy IBM watsonx across its platform, aiming to transform the employee benefits experience and optimize enterprise operations.

The collaboration will establish a virtual AI innovation lab to prototype new AI solutions and test use cases with clients, focusing on benefit guidance and leave‑of‑absence support. Initial prototypes have shown potential to increase employee productivity by over 90%.

Alight will use IBM’s watsonx Orchestrate to automate workflows across internal systems and watsonx.governance to ensure responsible AI deployment. Pilot programs are scheduled for early 2026, with broader implementation expected in the first half of that year.

The partnership aligns with a broader industry trend of using AI to personalize benefits, automate processes, and improve employee experiences. IBM’s watsonx platform includes watsonx.ai, watsonx.data, and watsonx.governance, and is designed to help organizations scale AI impact.

Alight’s AI strategy includes the Alight LumenAI™ engine, and the IBM partnership is part of its broader digital transformation. The company serves 35 million people and their dependents through its cloud‑based human capital technology and services.

Alight’s recent financial performance shows positive momentum. In Q3 2023, revenue grew 8.4% year‑over‑year to $813 million, and in Q2 2023 revenue grew 12.7% year‑over‑year to $806 million. Gross profit and adjusted EBITDA also grew year‑over‑year, indicating improving profitability.

CEO Dave Guilmette said the partnership would accelerate Alight’s ability to deliver innovative, AI‑driven benefits solutions and strengthen its competitive position in a market where technology differentiates providers.

The benefits administration market remains competitive, with firms increasingly leveraging AI to differentiate offerings and meet evolving employee expectations. Alight’s partnership with IBM positions it to capture this shift.

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