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Google reportedly told employees they must allow a third-party AI healthcare tool to access their data to receive health benefits, but quickly backtracked after sparking employee dissatisfaction.
Google asked its U.S.-based employees seeking health benefits through its parent company, Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), to allow access to AI-powered tools offered by Nayya, during the upcoming enrollment period, as per an internal document reviewed by Business Insider. Nayya offers personalized benefits recommendations.
Employees were reportedly told that those who opted out of sharing their data with Nayya would not be eligible for any health benefits, according to the initial guidelines. This sparked concern among staff about the need to share sensitive medical information with an external tool. As a result, Google later clarified its policy.
Google spokesperson Courtenay Mencini told BI that “Our intent was not reflected in the language on our HR site,”
“We’ve clarified it to make clear that employees can choose to not share data, without any effect on their benefits enrollment.”
Nayya can access only “standard” employee data, like demographic details, and only if employees opt in, she added.
According to Mencini, the tool, which has cleared Google’s internal security and privacy checks, was introduced to help employees more easily navigate their comprehensive healthcare benefits.
Google did not immediately respond to Benzinga’s request for comment.
This move by Google comes in the wake of an increasing trend among tech giants to integrate AI into their operations. In September 2025, Alphabet CEO Sundar Pichai announced a partnership with PayPal Holdings Inc. (NASDAQ:PYPL) to integrate PayPal’s payment solutions with Google’s AI-powered shopping and cloud platforms.
Moreover, in April 2025, Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella revealed that AI now writes up to 30% of Microsoft’s code, indicating a significant shift in software development as AI tools reshape how tech companies build their products.
The integration of AI into health benefits is a new frontier, and Google’s move could set a precedent for other tech companies to follow. However, the concerns raised by employees about data privacy highlight the challenges that companies may face in balancing the benefits of AI with privacy concerns.
Benzinga's Edge Rankings place Google in the 83rd percentile for momentum and the 85th percentile for quality, reflecting its strong performance in both areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
