AI in Pensions Administration: Start with members, not technology

Across the pensions industry, conversations about AI are happening at pace. Trustees are rightly curious about how far the technology can go: can it speed up processes, improve accuracy, or make administration services more intuitive for members? AI has massive potential, but the rush to deploy it can sometimes create a risk of fixing the wrong things and creating solutions that don’t benefit members.

AI washing, where bold claims prove to be unsubstantiated, is increasingly common. AI is powerful, but it is not a silver bullet. It cannot fix unclear processes, unstructured data, or a lack of insight into what members actually want and need. Its limitations matter – not because they diminish its usefulness, but because they influence how trustees should think about deploying it safely, responsibly, and with members in mind.

The real opportunity is to use AI as part of a broader shift: one that begins with understanding people and ends with better decision-making, more empathetic interactions, and a service that feels built around members rather than systems.

A foundation of understanding

Every effective use of AI in pensions starts with a deceptively simple question: what are members trying to achieve, and where are they getting stuck? Without this foundation,  technology improvements in isolation risk shifting the member experience in the wrong direction.

Taking a step back is essential. Before implementing digital transformations, trustees need clarity on:

• What members are asking for in their day-to-day interactions.
• Where processes routinely slow them down or create confusion.
• Which tasks genuinely require human expertise and judgement.
• How administrators currently prioritise their time, and where capacity is being lost.

AI can play a role here. For example, at Isio we’ve used it to analyse 10,000 anonymised member interactions. This is not a technical exercise. It is a human one. It’s allowing us to create innovative solutions built on insight gathered from real member behaviour – the words people use, the patterns in their questions, and the moments when they need reassurance rather than efficiency.

When trustees begin with this kind of understanding, AI stops being a solution in search of a problem. Instead, it becomes a tool that can reinforce the fundamentals of good administration: clarity, accuracy and empathy.

AI is not the starting point – it is an accelerator

There is sometimes an expectation that AI can deliver sophisticated outcomes straight away: interpreting rules, validating data, or handling complex enquiries. But even the most advanced AI involves probabilities rather than certainty. It can accelerate processes and identify patterns, but it cannot replace the careful, structured thinking that underpins a well-run scheme.

That is why the foundations matter. Clean data, well-designed workflows, consistent documentation, and robust governance are not optional prerequisites – they are the conditions that allow AI to genuinely enhance outcomes. Without them, the results may be inconsistent, and trustees risk looking to AI for tasks it cannot reliably fulfil.

The message for trustees is not to lower their expectations of AI, but to put them in the right order. First comes understanding. Then comes structure. Only then does AI add meaningful value.

Member-first, not machine-first

When the discussion shifts away from technology and towards members, the role of AI becomes clearer.

Members want clarity. They want to know what actions they need to take, what information they need to provide, and how decisions affect their benefits. They want reassurance that their scheme understands them, not just their data. And they want to feel empowered and in control, and not confused and unsupported.

AI can support all of this – but only if used with a member-first mindset. For example, AI can help identify where members routinely struggle with processes, so schemes can redesign those interactions. It can highlight trends in questions and concerns, giving trustees a clearer view of the lived member experience. It can help build more intuitive interfaces, making it easier for people to self-serve on simple tasks while ensuring they are guided, not pushed, through important decisions.

In other words, AI is most valuable when it helps schemes deliver more of what members need: more clarity, more consistency and more time for human conversations where they truly matter.

Empowering administrators, not replacing them

Human connection is central to good administration; a fact that can be forgotten in the rush to implement AI efficiencies. Members often reach out during significant life moments – retirement, bereavement, career changes – and these conversations require empathy, patience and judgement. No matter how advanced it is, technology can’t replicate that experience.

AI’s role is to support administrators to provide this connection. By reducing time spent on repetitive, low-complexity tasks, AI can create space for administrators to use their skills where they can have the greatest impact. It can help spot patterns that may indicate a member needs additional support. And it can surface information more quickly, so administrators can spend more time focusing on the things that matter most to members.

This is not about automation replacing people. It is about people being able to deliver the kind of service that members value most.

AI depends on the right mindset

Much of the challenge around AI comes back to expectations. If trustees view AI as a shortcut through complexity, they may be disappointed. But if they view it as an enabler – one that becomes more powerful as human understanding improves – the picture changes entirely.

The schemes that will benefit most from AI are those taking a thoughtful, insight-led approach:

• They are curious about what members actually need.
• They are honest about where current processes create friction.
• They invest time in fundamentals before exploring new tools.
• They use AI as one part of a broader strategy to improve member experience.

This mindset prevents over-reliance on technology and ensures that members remain central to pensions administration and are not treated like a transaction.

An opportunity to move the whole industry forward

The conversation about AI in pensions is not just about innovation, it is about responsibility. Trustees know that accuracy, member confidence and long-term trust lie at the heart of a well-run scheme.

AI can strengthen all three – but only when applied proportionately with care and a commitment to understanding. AI shouldn’t just be seen as a way to create efficiencies and remove cost.

As the industry moves forward, trustees have an opportunity to shape how AI is used: not as a replacement for human expertise, but as a way to elevate it. Not as a route to cutting corners, but as a chance to create a more intuitive, supportive and responsive member experience.

AI’s true value lies in helping schemes do what they have always aimed to do: deliver for members, clearly and consistently, at the moments that matter.

If you’d like to learn more about how Isio is using AI to improve members’ experiences, please get in touch.