The use of artificial intelligence (AI) technology in the pensions sector is expected to increase dramatically over the next decade, with 41% of professionals expecting it to be used in up to half of their firm’s services.
A recent member poll from the Society of Pension Professionals (SPP) showed that 87% of respondents said AI was being used by their firm.
The survey, which was published on Monday, also revealed the technology’s use was currently limited, as 77% used AI in up to 5% of their services.
Matthew Giles, SPP council member and a partner at law firm Squire Patton Boggs, said: “The survey results are very helpful in terms of testing the mood of the pensions industry on AI.
“We have obtained a helpful snapshot of the extent to which AI is being utilised today and also a forecast of how adoption will increase in the future. Although the survey highlights risks and barriers to more widespread use of AI, it also identifies clearly identifiable benefits and overall indicates considerable enthusiasm for the technology within the pensions sector.”
In the next 10 years, use of AI in the pensions sector is expected to increase significantly with 41% of respondents to the SPP’s survey stating that they expect AI to be used in 10% to 20% of their services.
Another 41% predicted it will be used in up to 50% of their services within 10 years, and the remaining 18% said they anticipate it to be used in more than 50% of their services.
Respondents highlighted speed (61%) and cost reduction (26%) as the main benefits of AI.
Nearly two thirds (65%) identified inaccuracies or “hallucinations” generated by AI models as the biggest risk of using the technology. A further 19% said there were no significant risks of the technology was managed well.
Barriers to adoption of AI cited by respondents included organisational nervousness (39%), customer concerns (16%), and cost (13%). More than a quarter (29%) of respondents said there was no significant barrier to the widespread adoption of AI.
