By Shani McKenzie, Head of Sole Trustee Services, Hymans Robertson
Investing in technology for efficiency is necessary to address pressure on pensions spend; in turn technology is enabling capacity within professional trustee firms to be amplified and support conservative recruitment outlooks. The firms agree that even as technology improves efficiency, it doesn’t replace certain roles, especially those that come with skills like judgement.
AI adoption varies. Many firms have embedded AI in the management of schemes, but some use it only for back-office work. Others are proceeding cautiously and still testing pilot projects. Professional trustees are more likely to use AI for sole trustee appointments, where all the decision-makers have access to the same in-house tools.
How sole trustees are using technology
Some firms shared their views on how technology and data analytics should shape innovation to enhance the member experience. For example, tools like chatbots can help members access information about their pensions. Technology can help give members guidance, and access to data, which instils confidence. One firm flagged that members might be using AI to summarise communications they receive from their schemes, and that it’s important for trustees to be in control of the messages reaching members.
Trustees are using AI to find information in document repositories. There was strong support that a complete document repository is one of the most important things to a sole trustee, giving a single source of information. AI can help to retrieve past decisions, determine benefits from the latest Deed of Amendment or check for potential blind spots in previous trustees’ decisions.
Some professional trustees are testing AI to summarise meeting packs. While a summary is not a substitute for reading advice papers, it can help to prioritise matters between schemes. Other firms use AI for taking minutes to free up time for support teams.
Many trustees say they use AI to ‘support’ trustee discretions. But they caution against over-reliance on AI, and note the need for judgement, particularly with the increasing complexity of member discretion cases.
The future for technology and professional trusteeship
Professional trustees are looking at how technology makes work more efficient while maintaining judgement and collaboration where needed. They’re exploring AI in particular, with lots of small things expected to add up to a greater sum – for example, by helping firms take on more appointments and complex work, particularly where they act as a sole trustee.
Trustees acknowledge that AI has the potential to make an even bigger difference. If it’s adopted more widely and efficiently, it could enable professional trusteeship to keep growing strongly.
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