Pension Schemes Act to accelerate AI use in UK pensions sector, says Lumera

The Pension Schemes Act is expected to speed up the use of artificial intelligence (AI) across the pensions sector, according to Lumera. 

The reforms will increase the amount and complexity of data that providers will need to handle, covering both defined contribution (DC) and defined benefit (DB) markets.

Lumera stated that providers will need to use AI and updated technology systems to keep pace and manage new requirements. 

Maurice Titley (pictured), commercial director, data and dashboards at Lumera, said: “As we enter a new era for the pensions sector in the UK, AI is set to be a critical driver of transformation in how providers achieve greater efficiencies and improve the member experience.

“Greater automation and use of AI will play a critical role in supporting the evolving requirements and regulations contained within the Pension Schemes Act that the industry must comply with. 

“Innovative operating models, human oversight and robust governance will be at the centre of this drive, giving trustees and providers the confidence to capitalise on AI’s full potential.”

Titley added: “It creates an opportunity to improve administration, standards and outcomes right across the pensions sector, enhancing rather than replacing the expertise that defines the industry.

“Investment in these technologies will be critical to extracting maximum value over the long term and achieving a market that is prudent, progressive and people-centric.”