Pension plans take a cautious approach to AI

Pension plan sponsors are adopting artificial intelligence cautiously as they balance efficiency gains with trust, governance and fiduciary duty. Sebastien Betermier, finance professor at McGill University, says AI is gaining traction in automated note-taking, member support and routine administration. However, unreliable information from AI tools and social media can create confusion and damage credibility.

“The biggest asset a pension fund has is trust above and beyond the assets it actually does manage,” Betermier said. While AI could improve productivity and member communications, he stresses that pension funds must prioritize accurate information, data protection and careful implementation rather than moving too quickly.