AI for Pensions: Transformative Potential, Responsible Use

The pensions industry stands on the brink of a technological transformation. Artificial Intelligence (AI) is beginning to reshape how schemes operate, engage members, and manage investments. At iPensions Group, we believe that while AI offers exciting opportunities, its adoption must be handled with care, responsibility, and a commitment to safeguarding members’ futures.

Unlocking the Benefits of AI in Pensions

From streamlining administration to personalising member experiences, AI has the potential to significantly enhance the delivery and management of pension services. Recent insights from the Pensions and Lifetime Savings Association (PLSA) reveal that AI is already improving key areas, including:

Personalised communications and retirement planning tools, helping members make more informed decisions.

Fraud detection and cyber protection, increasing the resilience of pension systems.

Automated administrative tasks, reducing costs and freeing up human resources.

Support for trustees, such as summarising meeting papers or offering data-driven insights.

These innovations are not theoretical. They’re already being piloted or deployed across various schemes across the sector, with many experts forecasting that AI will become a standard component of pension fund management by 2035.

Managing the Risks: A Cautious Path Forward

Despite its promise, AI introduces real challenges. Pension schemes must be mindful of data governance, cyber risk, regulatory compliance, and ethical concerns.

Unlike some other financial sectors, the pensions industry bears a long-term fiduciary duty. That responsibility requires that all technology – no matter how advanced – must be adopted within a strong governance framework. At iPensions Group, we support the view that AI should augment, not replace, human decision-making. Trustees and administrators must remain accountable and engaged in the processes that impact members’ retirement outcomes.

Moreover, with data playing a central role in AI systems, safeguarding personal information is non-negotiable. Cybersecurity must be a foundational consideration, not an afterthought.

A Regulatory Watchdog on Alert

The UK Treasury Committee’s recent inquiry into the use of AI in financial services, including pensions, underscores both the opportunities and the scrutiny the technology invites. Lawmakers are rightly asking questions about transparency, accountability, and consumer protection. As regulation evolves, it’s essential that all industry stakeholders work collaboratively to ensure AI benefits members without introducing new risks.

Our Commitment at iPensions Group

At iPensions Group, we are actively exploring how AI can be used to enhance the way we serve advisers, trustees, and members. Whether it’s harnessing intelligent tools to simplify processes or exploring data insights to improve engagement, our focus is clear: innovation with integrity.

Our CTO Hrishi Kulkani shared his thoughts on the use and integration of AI into the pensions sector: “Artificial Intelligence is not a silver bullet, but when used responsibly, it can be a powerful tool to enhance member outcomes and operational resilience. At iPensions Group, we’re exploring AI with a clear focus: to support human decision-making, strengthen governance, and deliver meaningful efficiencies — without ever compromising the trust our members place in us.”

We are committed to staying at the forefront of AI developments – but always with our eyes on the core values that define responsible pensions management: security, transparency, and long-term trust.

Disclaimer

The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought (as well as legal advice where required) in both the UK and any jurisdiction where you are resident.

iPensions Group Limited is authorised and regulated by the Financial Conduct Authority, Licence Number 464521.