The PLSA has submitted a response to the Treasury Select Committee's inquiry into use of AI in Financial Services, which explores the potential impacts of the increased use of Artificial Intelligence (AI) in banking, pensions and other financial services.
In our response, we highlight the benefits and risks that AI adoption can have for the pensions industry. AI can help schemes to improve administrative efficiency, member communications and engagement, as well as helping to support and enhance trustee decision making. AI helps to drive down costs for schemes, ultimately improving member outcomes. However, AI adoption comes with associated risks. One significant risk is financial losses to schemes and members resulting from cyber security and data privacy breaches. In order to mitigate this risk, firms must have robust cyber security protocols in place.