Future technology of pensions: uses of AI and cyber security

As part of our 2025 Pensions Week, our session "Future technology of pensions: uses of AI and cyber security" explored the transformative potential of artificial intelligence (AI) and the critical importance of cyber security within the UK pensions sector. Chaired by RSM Director Elisabeth Storey, the session featured insights from experts Sarah Belsham and Stuart Leach, both Partners at RSM, along with Sandra Harvey, Scheme Secretary and Governance Consultant at Pi Partnership. Audit Manager Mike Harmer ran the interactive polls and led the Q&A session, leading to lively debate.

The day before our webinar, The Pensions Regulator (TPR) issued its new data strategy. This corporate plan sets out three pillars: protecting savers’ money, enhancing the pensions system, and innovating in savers’ interests.

The discussion highlighted how AI is already being utilised within the pensions industry, its potential future applications, and the necessary risk considerations needed to protect members and scheme assets. Emphasising the rapid advancements in AI technology, the session underscored the imperative for the pensions industry to embrace these changes to stay competitive, secure, and in alignment with TPR’s data strategy.

Key takeaways from the session

AI's current and future applications: Sarah Belsham explained that AI, both traditional and generative, is already being used for predictive analytics, anomaly detection, and content creation. The future holds even more potential, with AI expected to enhance member engagement through personalised communications and interactive tools like chatbots.

Cyber security risks: Stuart Leach emphasised the importance of robust cyber security measures to protect scheme members and their data. He warned against the use of open-source AI tools like ChatGPT for sensitive tasks due to potential data breaches and policy violations.

Trustee governance: Sandra Harvey shared her experiences so far of using AI as part of trustee governance, highlighting its potential to streamline tasks such as minute writing and document summarisation. However, she cautioned about the variability in AI outputs, confidentiality concerns, and the need for human oversight.

Member engagement: the discussion touched on AI’s role in improving member engagement by providing personalised recommendations and simplifying complex information. This is particularly important for younger generations who are more comfortable with digital interactions, but it’s essential to ensure all members benefit from these advancements, so no segment of the pension scheme population is left behind.

Data quality and management: the success of AI initiatives hinges on the quality and availability of data. Ensuring accurate, up-to-date, and comprehensive data is crucial for effective AI implementation.

What does AI and cyber security mean for the pensions sector?

The integration of AI into the pensions sector presents both opportunities and challenges. On one hand, AI can significantly enhance operational efficiency, improve member engagement, and provide valuable insights for better decision-making. On the other hand, it necessitates substantial investment in technology and data management, as well as stringent cyber security measures to protect sensitive information.

Trustees, as ever, remain responsible for the members and assets in their pension schemes. It’s crucial that those charged with governance fully understand the actions taken on their behalf by third parties. If AI is being used, whether by administrators or investment managers, what protections and guardrails are in place?

As AI continues to evolve, pension scheme trustees and scheme advisors should stay informed about technological advancements and be proactive in adopting innovative solutions while mitigating the associated risks. The future of pensions will likely be shaped by those who can effectively leverage AI to deliver better outcomes for members and stakeholders alike.