Pensions - Articles - AI usage is now universal across the pensions industry

The SPP 2026 AI Survey results indicate uniform adoption of AI within the UK pensions industry. Looking to the future, most respondents expect an increase in usage. More than two thirds (69%) expect AI to be used in up to 50% of their services, up from 41% in 2025.

 

Respondents identified the main benefit of AI being an increase in speed, which was highlighted by over half (53%) of respondents. Greater personalisation and the ability to reduce costs and fees were also identified as benefits, both by 16% of respondents. Further anticipated benefits included the use of AI to improve accuracy and to free up employees time, so they can add greater value.

 

The survey also asked SPP members to identify the biggest risks of using AI. Whilst over half (53%) said that hallucinations or inaccuracy was the biggest risk, this was down from 65% in 2025. This was followed by around one in five (21%) who cited data protection concerns. 11% said that they did not believe there was any significant risk if the use of AI is managed well (down from 19% in 2025).

 

The survey also revealed a number of barriers which may be slowing the adoption of AI across the UK pensions industry. 21% identified organisational nervousness as the biggest barrier, down from 39% in 2025. Other barriers highlighted included a lack of understanding (16%) and the cost of adoption (11%). 11% of respondents said that there is no barrier to adoption if AI is managed well.

 

Matthew Giles, SPP Council member and Head of Pensions at Squire Patton Boggs said: “As the SPP 2026 AI Survey results show, the use of AI in the pension sector is now universal - a remarkable shift in a short space of time. The survey also shows that not only is every respondent now using AI, but that its role is set to deepen significantly, with the majority expecting it to support up to half of their services in the future.

 

We have gone beyond the experimental phase to the realisation of tangible benefits, particularly in terms of speed, efficiency and the potential to deliver more personalised services while reducing costs. At the same time, concerns around risks such as inaccuracy and organisational nervousness are beginning to ease. Challenges remain but it looks as though the industry is on the right track - ensuring AI is deployed responsibly so that it enhances, rather than replaces, the human expertise that underpins good pension outcomes.”