How AI and Wearables Are Changing Return-to-Work Programs

Return-to-work programs are getting a technology upgrade in 2026. Two tools are showing up more often in  workers' compensation claims: AI-assisted claims management and wearable devices that track recovery. 

On the claims side, insurers are using AI to help manage caseloads, flag compliance issues, and support return-to work decisions. About 60% of insurers expect AI to improve return-to-work outcomes specifically, since the  technology can process case documentation and flag readiness indicators faster than manual review alone. 

Wearables are being used more directly with injured workers. Smartwatches, activity trackers, and sensors can  track rehabilitation progress and physical activity levels, giving physical therapists and case managers real data on  how a recovery is progressing, rather than relying only on self-reported symptoms. Some employers are also  using wearables to flag ergonomic risk before an injury happens, tracking repetitive movements or awkward  postures that tend to lead to strain injuries. 

The technology isn't a guaranteed win. About 70% of workers' compensation carriers that have invested in AI say  they haven't yet achieved the outcomes they expected, and most of that gap comes down to implementation, not  the technology itself. Rolling out a new tool without changing the workflows around it tends to produce  disappointing results. 

For employers and adjusters evaluating these tools, the practical question isn't whether AI or wearables work in  general. It's whether a specific vendor's tool fits into existing claims and case management processes well enough  to actually get used. 

Source: Risk & Insurance, AWCBC