Source: Pinsent Masons

The UK pensions market is increasingly adopting artificial intelligence (AI) technologies to improve operational efficiency, customer service, and risk management. AI applications include fraud detection, personalized financial advice, and enhanced risk assessment. However, the integration of AI raises concerns about data privacy, potential bias in algorithms, and compliance with regulatory standards.

Pension providers and regulators stress the importance of transparency and accountability to maintain stakeholder trust. Challenges such as compatibility with existing legacy systems and the impact on the workforce are also highlighted. Industry collaboration is encouraged to establish best practices and standards for ethical AI use. Continuous monitoring and risk mitigation strategies are deemed essential to harness AI’s benefits while minimizing potential harms in the pensions sector.