For years, the pensions industry has debated whether artificial intelligence would eventually play a role in member engagement.

That debate has ended.

The key question now is whether pension schemes, administrators and providers are prepared for a world where members are already using AI independently.

Increasingly, members are already doing so.

The Shift Is Already Happening

Recent research commissioned by Lloyds Banking Group found that approximately 28.8 million UK adults - more than half the adult population - are now using AI tools for financial matters.

Financial guidance is now the most common use case, surpassing work, education, healthcare, and lifestyle applications.

People are already asking AI about:

  • budgeting
  • savings
  • investments
  • tax
  • pensions
  • retirement planning

While the industry discusses future possibilities, members are already experiencing them.

Today, many members turn to ChatGPT for pension questions before contacting their provider.

The Advice Gap Has Created An Opportunity

This shift should not be surprising.

The industry has long faced a major challenge: many members need guidance, but few receive advice.

Professional financial advice remains valuable, but it is not always accessible or affordable for every saver.

At the same time, pension information is often:

  • complex
  • fragmented
  • highly technical
  • difficult to interpret

AI offers something members have rarely had before:

  • Instant answers
  • Available 24/7
  • In plain English

Whether those answers are always correct is a separate issue. However, members clearly value the accessibility.

The Governance Challenge

This creates a significant challenge for the industry.

Members increasingly trust AI. However, generic AI models do not know:

  • scheme rules
  • administrator processes
  • benefit structures
  • member records
  • trustee policies

These models generate answers based on probabilities rather than certainty. For pensions, that distinction matters. A misunderstanding about retirement age, transfer options or contribution levels can have significant, life-altering consequences.

As a result, governance is no longer a theoretical discussion; it is now an urgent operational priority.

Preventing members from using AI is no longer feasible.

The challenge is to ensure members have access to trusted, governed AI tailored to their specific scheme.

The Industry Is Already Moving

The financial services sector is already acting.

In April 2026, Scottish Widows became one of the first major UK providers to pilot an AI-powered investment guidance tool, operating within the FCA’s emerging targeted support framework.

The direction is clear.

The question is shifting from "Should we use AI?" to "How do we use AI responsibly, at scale, and within regulatory requirements?"

What Members Actually Want

In many cases, members are not specifically asking for artificial intelligence, they are asking for:

  • answers
  • clarity
  • accessibility
  • Confidence

Technology is simply a means to deliver these outcomes.

Members are less concerned about whether an answer comes from a portal, contact centre, chatbot, or AI assistant.

They care about accuracy, trustworthiness, and clarity.

The Real Question

As we discussed in previous articles, Pension Dashboards are expected to make pension information more visible than ever before.

Visibility creates questions. Questions create demand.

Increasingly, some of these questions will be directed to AI, regardless of whether schemes are prepared.

The question is no longer whether members will use AI; millions already do.

The question is whether pension schemes will provide governed, trusted alternatives before members rely on generic tools that were never designed for pensions.

Members are already asking. The industry must now decide how to respond.

Further Reading & Sources