Artificial Intelligence and pensions: harnessing potential with care

Artificial Intelligence (AI) is starting to influence how schemes and advisers operate, interact with members, and manage investments. At Momentum Pensions, we recognise the vast opportunities AI brings – but also the importance of adopting it in a way that safeguards the interests of members and upholds the principles of responsible pensions management.

Navigating the Risks

AI is not without its challenges. Issues such as data governance, cyber security, regulatory compliance, and ethical application demand careful attention.

In pensions, the responsibility to act in members’ best interests is a long-term commitment. Any technology, no matter how sophisticated, must operate within robust governance frameworks. At Momentum Pensions, we see AI as a way to complement – not replace – human judgement. Trustees and administrators must remain actively engaged and accountable for the steps that impact retirement outcomes. With AI relying heavily on data, protecting personal information is paramount. Cybersecurity should be a core consideration from the outset, not a secondary measure.

Regulation Keeping Pace with Innovation

The UK Treasury Committee’s recent inquiry into AI in financial services, including pensions, highlights both the excitement around its potential and the importance of oversight. The focus from policymakers on transparency, accountability, and consumer protection is well placed. As regulation continues to evolve, the industry must work together to ensure AI strengthens pension provision rather than creating unforeseen risks.

Real-World Benefits Emerging

When applied thoughtfully, AI can deliver measurable improvements to the pensions experience. Recent insights from the Pensions and Lifetime Savings Association (PLSA) reveal that AI is already improving key areas, including:

• Personalised member communications and retirement planning tools – helping individuals make better-informed decisions.
• Advanced fraud detection and stronger cyber protection – building resilience into pension systems.
• Automation of routine administrative processes – improving efficiency and reducing operational costs.
• Support for trustees and scheme managers – providing rapid analysis of reports and actionable, data-driven insights.

Industry experts anticipate AI becoming a mainstream part of pension fund management by the mid-2030s, transforming the way schemes are run and experienced.

Momentum Pensions’ Commitment

We are actively exploring how AI can be used to enhance the way we serve advisers and members. This includes investing in technology that simplifies processes, improves engagement, and delivers secure, user-friendly digital solutions.

Our Managing Director, Susan Brooks, has stated: “Our significant investment in technology infrastructure allows us to scale and innovate effectively. At Momentum Pensions, responsible innovation is key – we implement cutting-edge technology, but always with robust governance, data security and a client-first approach at our core.”

We believe the future of AI in pensions will be defined not just by what it can do, but by how it is used. At Momentum Pensions, we will continue to lead with integrity – embracing innovation while maintaining our commitment to security, transparency, and long-term trust.