The growing use of artificial intelligence (AI) across pension scheme operations should be viewed primarily as a governance challenge rather than a new regulatory risk for trustees, Cartwright Pension Trusts has argued.

The comments follow the publication of The Pensions Regulator's (TPR) AI strategy in May, which set out the regulator's approach to AI in pensions, its expectations for trustees and scheme managers, and its plans for using the technology internally.

Cartwright noted that the increasing adoption of AI across administration, member services and operational processes reinforced the importance of effective governance, oversight and accountability frameworks.

Commenting on the issue, Cartwright director of pensions administration, Julie Yates, said: "The emergence of AI has understandably generated a lot of discussion across the pensions industry.

"But in many respects, the principles trustees need to apply are the same ones they already use when overseeing administrators, advisers, technology providers and other outsourced services.

"The issue is not whether AI is being used, but whether there is sufficient visibility, oversight and accountability around how it is being used and what controls are in place."

Indeed, Yates stressed that trustees remained responsible for decisions and member outcomes, regardless of whether services were delivered by people, technology platforms or AI-enabled systems.

As a result, she said trustees should focus on understanding where AI was being used within their service provider ecosystem, who is accountable for outputs, how decisions are monitored, and what safeguards are in place.

Yates also warned that one of the biggest risks may stem from the unmanaged use of publicly available AI tools without a "full understanding" of the security, confidentiality, or governance implications.

The comments align with TPR's AI strategy, which highlighted the potential opportunities AI presents for the pensions sector while emphasising the need for appropriate governance, risk management and oversight.

"Many of the concerns being discussed today ultimately come back to familiar principles around data protection, supplier oversight, risk management and operational resilience," Yates continued.

"The technology may be evolving, but the governance fundamentals remain largely unchanged."

Meanwhile, Yates argued that schemes should incorporate AI considerations into their existing governance and risk management arrangements, rather than treating AI as a standalone risk category.

"AI has the potential to deliver significant benefits across pensions administration and member services," she added.

"The challenge for trustees is not whether to engage with the technology, but ensuring its use is properly understood, governed and controlled. Good governance always remains the most effective safeguard."

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