The Society of Pension Professionals (SPP) has revealed that 100 per cent of the UK pensions sector is now using artificial intelligence (AI) in services, up from 87 per cent of respondents last year, according to a survey of its members.

The SPP 2026 AI Survey found that more than two thirds (69 per cent) of this year’s respondents expect AI to be used in up to half of services in the future, compared to 41 per cent in 2025.

Speed was identified as the biggest benefit of using AI, chosen by over half (53 per cent), followed by greater personalisation (16 per cent) and reducing costs and fees (16 per cent).

Over half (53 per cent) of members identified hallucinations – incorrect or misleading results generated by AI – and inaccuracies as the main risks; however, this was down from 65 per cent in 2025.

Around one in five (21 per cent) thought data protection concerns were the number one risk.

But confidence is growing, as 11 per cent of members said they do not believe there is any significant risk to incorporating AI into services if managed well, down from 19 per cent last year.

SPP council member and Squire Patton Boggs head of pensions, Matthew Giles, explained that the uniform adoption of AI across the pensions landscape is “a remarkable shift in a short space of time".

He added: “The survey also shows that not only is every respondent now using AI, but that its role is set to deepen significantly, with the majority expecting it to support up to half of their services in the future”.

In addition, the SPP survey asked respondents about the perceived barriers to AI adoption in their industry.

One in five (21 per cent) flagged organisational nervousness as the greatest barrier, although this was down from 39 per cent in 2025. Others cited a lack of understanding (16 per cent) and the cost of adoption (11 per cent), while 11 per cent again said there were no barriers to adoption if managed well.

Giles commented: “We have gone beyond the experimental phase to the realisation of tangible benefits, particularly in terms of speed, efficiency and the potential to deliver more personalised services while reducing costs. At the same time, concerns around risks such as inaccuracy and organisational nervousness are beginning to ease.

“Challenges remain but it looks as though the industry is on the right track – ensuring AI is deployed responsibly so that it enhances, rather than replaces, the human expertise that underpins good pension outcomes.”

The SPP 2026 AI Survey sought views from a cross-section of SPP members, including pension administrators, actuaries, consultants, investment and covenant advisers, pensions lawyers and professional trustees.

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