Pension schemes have been urged to overcome their resistance to the responsible use of artificial intelligence (AI), following an internal pilot by Trafalgar House that found AI has the potential to support schemes in a practical way.

The eight-month trial assessed whether AI could support the interpretation of complex scheme rules and the development of benefit and calculation specifications, focusing on its ability to help administrators analyse provisions, identify requirements and produce clearer outputs under specialist oversight.

Trafalgar House director, Daniel Taylor, explained the sector was facing growing pressure from rising expectations and constrained resources, as member queries became more complex and frequent while fees remained under pressure, increasing the need for solutions such as AI to maintain service standards.

“However, there is still hesitation around AI within parts of the industry, and that needs to shift,” he said.

“The barriers to adoption need to start coming down, and we need to see less resistance to technology that has the potential to support schemes in a very practical way.”

Taylor explained that some of the resistance comes from a misunderstanding of how AI can be used in a regulated environment.

“It is sometimes viewed as a ‘wild west’ tool, or as something that sits outside the governance and security frameworks pensions administration requires,” he said. “In reality, that is not the case.”

He argued that with “the right controls, oversight and implementation” AI can operate within the same standards of data security, auditability and compliance that support all good administration.

Taylor added their call to action was not about replacing people, but instead about enhancing the capabilities of experienced teams, boosting efficiency and enabling schemes to meet rising demand without compromising quality.

“Ultimately, schemes just want reliability, clarity and confidence when dealing with administration. AI can help protect those outcomes when used responsibly and the industry should be exploring it with real purpose, not hesitation,” he concluded.

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