isolved’s annual Broker Trends report shows that while ERISA, COBRA, and other regulatory changes continue to challenge HR teams, 64% of brokers say AI is improving compliance tracking and reporting
isolved®, a provider of human capital management (HCM) solutions that help organizations recruit, retain and elevate their workforce, today released its “Emerging Trends for Brokers in 2026” report. This study draws on responses from 200 U.S.-based brokerage professionals to explore how compliance pressures, AI adoption and economic uncertainty are driving increased demand for broker services and reshaping brokers into trusted advisors across the HR function.
“For 40 years, we’ve worked closely with the broker community as compliance, benefits and workforce needs have continually evolved, and 2026 is no exception,” said Jura Slattery, Chief Customer Officer at isolved. “What’s different now is the pace of change. Brokers are being asked to guide clients through rising regulatory pressure, economic uncertainty and AI adoption all at once. Our data shows they’re becoming true extensions of HR teams, leaning on technology and insight to deliver faster, more personalized guidance while staying grounded in the real needs of employers and employees.”
Three themes consistently showed up in isolved’s Emerging Trends for Brokers in 2026 report:
Compliance expertise emerges as brokers’ biggest differentiator
In 2026, compliance remains one of the toughest challenges for brokers and their clients, but it’s also creating opportunity. Fifty-eight percent (58%) of brokerage professionals say demand for compliance support is rising. Looking ahead to the major regulatory changes on the horizon for 2026, three issues rise to the top. Fifty-seven percent (57%) of respondents cite ERISA (Employee Retirement Income Security Act) as a top concern for clients, followed by COBRA (Consolidated Omnibus Budget Reconciliation Act) at 51% and FMLA (Family Medical Leave Act) at 47%.
Zooming further out, 47% of brokers say rising healthcare costs will have the greatest impact on their business in the next two to three years, followed by data privacy regulations (46%). Brokers who stay ahead of regulatory shifts, deliver trend insights and master scenario planning will be positioned as always-on strategic advisors for their clients.
“Traditional” HR-broker relationships have gone extinct
As brokers continue to prove their value as indispensable extensions of HR teams, demand for their expertise is rising. Nearly all respondents (93%) say clients now seek support beyond traditional services. Unsurprisingly, guidance on AI (46%) and compliance support (36%) top the list of requests.
Looking ahead, brokers also signal growing momentum around other non-traditional offerings. Today, just 21% offer commuter benefits, but that number is expected to rise to 45%, as an additional 24% say they will offer this benefit in the next year. This is a clear reflection that office-based work is the status quo once more, and brokers are stepping in to support evolving workplace needs. Brokers are also increasingly recognizing the value of partnering with HCM providers. Fifty-seven percent (57%) of firms will offer HCM technology services within the year.
Brokers are all in on AI, but cite one overlooked area
Brokers don’t act alone when helping clients stay ahead of regulatory shifts. Instead, brokers who serve as truly standout, trusted advisors are leveraging AI to predict needs and deliver fast, personalized guidance. Eighty-five percent (85%) of brokers are using or exploring AI, with automated compliance monitoring (53%) and personalized financial wellness planning (50%) emerging as the top use cases. In this dynamic environment, AI’s impact is tangible. Brokers report that AI’s greatest perks lie in streamlined compliance (64%) and improved employee engagement (61%), with faster hiring ranking close behind as a key benefit, cited by 49%. These outcomes align with broader labor market signals: recent data from the Bureau of Labor Statistics (BLS) links AI investment to historically high productivity, even as the market closes out its weakest hiring year since 2020, underscoring why efficient hiring, compliance and engagement gains matter more than ever.
“HR leaders think in measurable outcomes, which brokers have clear evidence that AI is delivering, from seamless compliance support to stronger engagement and hiring,” said Slattery. “At the same time, the survey finds that 55% of brokers think AI falls short when it comes to the softer, human side of work. People still sit at the heart of everything HR touches, which is why brokers and HR leaders want results without sacrificing trust or human connection. HR technology providers that deliver AI that accounts for the employee experience will earn broker confidence, and brokers that bring these solutions to clients will be hailed as irreplaceable advisors.”
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