What are the biggest AI opportunities facing UK pension schemes in 2026?

LawDeb Head of Trusteeship Jane Beverley and Head of Defined Contribution (DC) Elizabeth Hartree recently co-hosted a client event with law firm A&O Shearman which focused on cyber and AI in pensions.

During their panel the speakers shared their top tips for trustees managing the risks and opportunities around these. Here we share some of the questions and our experts’ responses.

How can AI improve pension scheme administration and member experience?

AI presents significant opportunities for UK pension schemes including:

• Personalised member journeys: Tailored communications based on individual circumstances
• Enhanced member engagement: AI detecting emotional tone to adjust call-handling style
• Data quality improvement: AI cleaning inconsistent pension scheme data
  Automated member queries: Intelligent chatbots handling routine questions
• Predictive analytics: Better forecasting for scheme funding and covenant assessment
• Healthcare integration: Smart wearables keeping people healthier and potentially working for longer

Member experience improvements through AI could significantly boost engagement with retirement planning.

However, AI also presents considerable challenges if members use this in inappropriate ways (for example asking GoogleAI whether to take a transfer, or uploading their benefit statement to open ChatGPT to ask for a summary).

Trustees will need to consider how they can best educate and inform members to help them to understand the risks AI could pose to their pension benefits.

What AI governance framework should pension trustees implement?

Effective AI governance for pension schemes balances innovation with risk management:

• Clear use case approval process: Which AI applications are acceptable?
• Data protection compliance: GDPR implications of AI processing member data
• Accuracy and bias monitoring: Regular AI output quality reviews
• Third-party AI due diligence: Vetting administrator and service provider AI tools
• Member communication transparency: Disclosure when AI interacts with members
• Human oversight requirements: Ensuring appropriate human review of AI decisions
• Regular governance review: Updating framework as AI capabilities evolve

The key is taking a positive approach while implementing appropriate guardrails.

How can trustees use AI as a member engagement opportunity?

AI is the topic of the moment. Trustees can leverage AI interest to refresh cyber security awareness:

• AI-themed communications: Using AI news hooks to repeat cyber security messages
• Newsletter content: Explaining AI risks and protections in member publications
• Educational campaigns: Helping members understand AI fraud risks
  Verification reminders: Reinforcing security procedures through AI lens

This approach combats "message fatigue" where repeated cyber warnings lose impact, reframing essential security guidance through current AI developments.

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This FAQ guide reflects current best practice as of January 2026. Pension trustees should regularly review cyber security and AI governance arrangements as threats and technologies evolve. For scheme-specific advice, consult specialist pensions legal and cyber security advisers.