What AI Could Do for DB Pension Schemes: Insights from ChatGPT in the UK

The rise of artificial intelligence (AI) has prompted curiosity and concern among various industries, with the pension scheme being no exception. Kirsty Headden, a director in pension team, decided to ask ChatGPT, a popular AI programme, to summarise the potential implications of AI on defined benefit (DB) pension schemes. While the generated article mostly focused on the potential benefits of AI, Kirsty Headden highlighted three implications that ChatGPT overlooked: susceptibility to bias, AI’s impact on the environment, and the tool’s inability to understand complex pensions issues. Although AI can offer efficiency and benefits, it is important for humans to review the output to avoid bias, and trustees should consider AI’s environmental impact as part of their ESG strategy. Additionally, despite AI being able to handle various tasks, it still cannot match human performance in comprehending complex issues. Therefore, the DB industry should be mindful of the risks and potentials of AI in pension schemes.