Google has reversed a controversial health benefits policy requiring employees to share personal data with a third-party AI tool. Following employee backlash over privacy concerns, the tech giant clarified that access to benefits is not contingent on using the Nayya AI platform. Employees can now opt out of data sharing with Nayya without impacting their benefits enrollment.

Google has reversed course on a controversial health benefits policy after employee pushback, clarifying that workers can access benefits without sharing personal data with a third-party AI tool. The tech giant initially told employees they must allow an AI platform from Nayya to access their information or risk losing benefits eligibility for the upcoming year.Following a Business Insider report on the internal backlash, Google updated its policy language. “Our intent was not reflected in the language on our HR site,” a Google spokesperson said. “We’ve clarified it to make clear that employees can choose to not share data, without any effect on their benefits enrollment.”

Google employees raised privacy concerns over mandatory AI tool access

The original policy, posted on Google’s internal benefits site, stated that employees seeking health benefits must grant access to Nayya’s AI-powered recommendations platform. The guidelines claimed that “Alphabet health plan participants can’t entirely opt out of third-party data sharing” and instructed employees to unenroll from benefits if they wanted to avoid sharing data with the health supplier.Staff members voiced frustration on internal forums, with one employee calling the policy “a very dark pattern.” Another post questioned why Google was “providing our medical claims to a third-party AI tool without a way to opt out.”

Policy update makes Nayya tool optional for all Google employees

The updated internal guidelines now state that Nayya is optional for all staff members, according to Business Insider. Employees who choose to use the tool will share information including pay, gender, and social security numbers with the platform, which provides personalised benefits recommendations.Nayya, backed by Workday and ADP, must protect health data in accordance with HIPAA regulations. Google confirmed that no employee data will be shared with Nayya for those who decline to opt in, ending concerns about forced participation in the AI-powered benefits system.