The use of artificial intelligence (AI) is expected to become more integral to pension providers, which will see the volume, breadth and complexity of their workloads increase following the introduction of the Pension Schemes Act, according to Lumera.

The Pension Schemes Act – which came into force last month (April) – introduced a package of reforms across the pensions landscape, intended to improve scale and member outcomes.

Lumera said the reforms also introduced large-scale data, consolidation and reporting requirements for providers.

For example, the new requirement for trustees to provide ‘guided’ default retirement pathways for members of trust-based defined contribution (DC) pension schemes required a focus on data for segmentation purposes.

This was a data challenge, Lumera argued, that AI could help providers meet.

The firm added that governance, operating models and technology – compliant with all legislation – will be necessary for providers to use AI responsibly.

Lumera commercial director, data and dashboards, Maurice Titley, said that Lumera expected AI to become “a key enabler of a more automated, standardised and resilient pensions Infrastructure” in the coming months.

“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,” he added.

Titley said that AI created 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,” he concluded.

Recently, third-party pension administrator, Trafalgar House, also urged schemes and trustees to embrace the use of AI as workloads increased.

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