Alight, Inc. (NYSE:ALIT) Q2 2023 Earnings Call Transcript

Katie Rooney: Yes, Heather, maybe I’ll take that one. So you’re right. We have our semi-annual releases now of the Alight Worklife platform, which is great because it’s a clear product roadmap driven with our clients that really continues to add value. What I’d say is how to think about it is actually more how we’re pricing new deals now such that we get value for platform. So remember, we used to face price pressure. Right now we’re looking at how do you build price into the contract going forward to account for those investments we’re making in platform that clients can see by being rolled out twice a year. So it is kind of an essence baked in. I think it’s a key element of the strategy given the investments we’re making and we’ve been able to demonstrate to clients that there is value in those releases.

Operator: Next question Steve Dechert with KeyBanc. Please go ahead.

Steve Dechert: Hey, just want to know, have there been updates you can provide on Phase 2 of your migration to the cloud? And then has there been any feedback on your latest release of Worklife? Thank you.

Stephan Scholl: Sure. Yes. Thank you.

Katie Rooney: Yes. Thank you, Steve. Yes, go ahead, Stephan.

Stephan Scholl: No, go ahead, Katie, please.

Katie Rooney: I was just going to start with just on the rollout and then I’ll — Stephan, I’ll let you talk about the release, which we just rolled out yesterday. So I would say it’s early, but just on the cloud migration, that is obviously a really important project for us. The team has done an incredible job. So we are really through kind of almost the first two phases of the rollout. The next kind of final piece will be completed in the first half of 2024. But again, the team has really done that in the right way with our clients. And now obviously we’re kind of on a pause as we enter a really important time with annual enrollment here this fall.

Stephan Scholl: Yes. And on the product side, again, while AI and generative AI are the topic of the day, we’ve been — that’s been our strategy for years. When you look at the hundreds of millions of interactions that we already undertake with 40 — with almost 40 million employees around the world, that data is powerful and that’s what is important for us to integrate into moments that matter. So that’s the work we’ve been under in this last release, is really building out capability in our software to be able to recognize PDF files for example, when somebody calls in and says, is a procedure covered under my health plan, those documents usually are static PDF type documents with generative AI, you can really build the capability to be able to look at the PDF formats and really sync the two — the question together with the answer without having to call our call centers.

Those are hundreds of thousands of calls that we get every single year. So we’re building out a really strong API library integration points. We’re building a very robust Ask Lisa type capability, which is the AI piece to really helping people navigate the complexity of making better decisions across health and wealth and wellbeing in general. And so we’re just continuing to double down on the front door platform and then the look and feel just making it look easier, simpler, kind of the iceberg phenomena as we all know, these DBDC navigation, retirement, payroll, benefit systems are just so complicated. And so the world of bringing that into a much more simplified front door capability in an integrated fashion. And then maybe the last piece I’ll say is the value of our platform is about really making it personalized to the individual.