Pension reforms will require stronger AI governance, says Lumera

Lumera said trustees and providers will need strong governance and robust controls as they roll out artificial intelligence (AI) to deliver pension reforms. 

The company stated that pension reforms will mean trustees and providers need to get more from their data, with AI set to play a key role in how this information is managed and analysed in the interests of members. 

Lumera added that the main challenge is setting up the right governance and controls, including clear human oversight and ‘humans in the loop’. 

Sami Saadaoui, head of AI architecture and operations at Lumera, said: “AI is set to become a critical enabler of the next phase of pension reform as the industry digests and begins to implement the Pension Schemes Act. 

“Schemes and providers will need to leverage AI to deliver more personalised member outcomes, support automated processes at greater scale and improve the consistency of decision-making across increasingly complex datasets. 

“However, the real challenge is not simply adopting AI, but deploying it within a robust governance and control framework.”

Saadaoui added: “Pension providers and trustees will need clear accountability, strong human oversight and transparent decision-making processes to ensure AI is being used responsibly and in members’ best interests. 

“The UK’s principles-based approach to AI regulation means firms cannot rely on prescriptive rulebooks alone.