Pensions managers and those running workplace schemes are being warned about the potential risks of using AI to help with administration tasks.
An industry body, The Pensions Administration Standards Association (PASA), has published new guidance offering practical support for schemes, administrator and trustees. This aims to offer information and education on both the opportunities and potential risks of this technology.
The guidance points out that “high-quality data” remains the bedrock of AI and sets out examples of current and emerging uses of AI in pensions – from chatbots and predictive analytics to fraud detection and intelligent document processing, alongside clear risk management considerations.
PASA chair David Fairs says: “AI is already transforming the way administration operates and interacts with members, but it brings real challenges in data governance, ethics and transparency.
“This guidance helps schemes and administrators navigate this balance, embracing innovation while ensuring data quality, trust and robust oversight remain paramount. As AI becomes more integrated into pensions administration, PASA will continue to champion responsible adoption to protect savers and support industry progress.”
The publication supports the direction outlined by both The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA), with both regulators emphasising responsible innovation and robust data management in policy updates.
Both have made statements encouraging administrators and trustees to take proactive steps to understand how AI is being used and to keep data quality at the top of their agenda.
The PASA guidance is available to download here
