Pension scheme members are uncomfortable with artificial intelligence (AI) making pension-related decisions without human review, research from Local Pensions Partnership Administration (LPPA) and Burges Salmon has found.

The survey of 1,690 members showed that only 2 per cent would be comfortable with AI making pension-related decisions without human involvement, while 61 per cent said they would never be comfortable with this approach.

However, this shifted to 69 per cent who said they would be comfortable now or in the future for AI to support pension-related decision making, as long as a person remained responsible for the outcome.

In the joint LPPA and Burges Salmon report, lack of human oversight (76 per cent), data protection and privacy (69 per cent), information accuracy (69 per cent), and trust and transparency (58 per cent) were identified as the key concerns, with respondents suggesting pensions were too important to be left solely to AI.

Overall, 30 per cent of members reported using AI tools for general use, but 53 per cent said they were not confident in the accuracy of AI-generated information, and only 9 per cent said they used AI tools to research topics such as retirement planning and pension benefits.

The survey also found that 50 per cent of members had used, or would consider using, AI to prepare a complaint or Internal Dispute Resolution Process (IDRP) submission, while 64 per cent said they would not disclose its use, potentially increasing the volume and complexity of complaints faced by pension schemes and administrators.

The research also discovered that 39 per cent of members were unaware that many AI tools process and store personal data.

Discussing the research, LPPA chief technology officer, Martin Davidson, said: "AI has quickly become part of our everyday lives, and these results show that while members are interested in the opportunities it offers, they're clear that confidence, security and access to trusted information remains essential.

"Members recognise the value AI can bring, but they want reassurance that oversight and accountability remain at the heart of important decisions.”

Davidson said the findings reinforced the importance of helping members understand new technologies while continuing to provide trusted pension administration and access to information.

In fact, 76 per cent of research respondents said they would find it useful for administrators to explain the risks of using AI when making financial and retirement decisions, and 81 per cent said they would welcome general guidance on using AI responsibly.

Adding to this, Burges Salmon partner, Chris Brown, said: “With members now using AI on a daily basis and The Pensions Regulator’s guidance on the topic expected soon, now is the time to get up to speed with the opportunities and risks of the technology and to ensure that appropriate governance arrangements are in place.”

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