A third (34%) of pension professionals see the use of artificial intelligence to support member advice and guidance to help close the advice gap, according to a new report.
All pension firms are now using artificial intelligence, according to the research from The Society of Pension Professionals.
Other challenges the pension professionals saw being assisted by AI were improving operational efficiency and cost (42%), enhancing data quality and analysis (12%), and improving advice quality and reducing manual error and rework (11%).
Helen Howell, partner at LCP and a member of the Society of Pension Professionals, said: “Pension professionals see AI not simply as a new technology, but as a practical tool for addressing some of the sector’s most pressing challenges.
“While improving operational efficiency and reducing costs remain the most immediate priorities, it is particularly encouraging that so many pension professionals also recognise AI’s potential to support member guidance and help close the advice gap.
“As AI adoption becomes universal across the pensions industry, the focus is increasingly shifting from whether firms should use AI to how they can use it responsibly and effectively to deliver better outcomes for schemes, employers and members.”
The SPP is the representative body for providers of advice and services to pension schemes, trustees and employers.
A separate report from Openwork found that nine in ten advisers (89%) believe AI would have an impact on the traditional client-adviser relationship.
The SPP surveyed 400 pension professionals at an event in June.