According to Forbes Advisor ‘Around one in six UK organisations, totalling 432,000, have embraced at least one AI technology – according to government research’. [1]
With this rising awareness around the immense potential of innovative technologies, the Pensions industry is witnessing a transformative shift. The once traditional sector is increasingly embracing Artificial Intelligence (AI) to spearhead growth and innovation. Today,
I touch upon how AI is shaping our industry and why professionals need to sit up and take notice.
The Role of AI in the Pensions Industry
AI, with its ability to learn, adapt and execute tasks, is a game-changer for the pensions industry. It is working behind the scenes to streamline operations, identify patterns and make predictions. It is important that we stay ahead of the curve, and AI is a brilliant tool that enables this.
Here are a few ways in which AI is driving positive change:
• Automating repetitive tasks: AI-powered automation is reducing minor and repetitive tasks allowing pension professionals to focus on more strategic and meaningful work.
• Predictive analysis: The use of AI in forecasting is fundamentally shifting the way we manage pensions. Advanced predictive analytics provide insights into future trends and behaviour, fostering a more proactive approach.
• Enhanced member experiences: AI tools such as chatbots are enabling round the clock member service leading to improved interactions and member relations.
• Fraud detection: AI can filter through large quantities of data quickly and pick up on any issues/ anything that needs to be addressed. AI, with its transformative potential, is undeniably steering the next wave of growth in the pensions industry.
AI in The Netherlands
According to an article written by Venu M. Tangirala, we are seeing the use of AI in business, particularly in the Netherlands. Tangirala states that ‘AI is no longer a futuristic concept for Dutch businesses—it's an integral part of their operational fabric. According to IDC's survey, 88% of organizations in the Netherlands use AI, compared to the European average of 78%. This robust adoption rate positions the Netherlands as a leader in AI-driven innovation.’ [2]
Perhaps the use of AI in The Netherlands will create positive outcomes and will see the European usage average increasing as a result.
As AI gains momentum, it brings along the need for a skilled and adaptable workforce. Pension professionals must be ready to keep up with—and contribute to—the pace of AI induced change. Upskilling and cross-skilling are vital. While the technical aspects of AI may be specific to IT professionals, understanding its impacts and implications are crucial. We must ensure that our approach while using AI is people-centric and that we don’t lose the personable feel that processes once had.
The Way Forward
With its unique blend of benefits, AI is essential for the future sustainability and competitiveness of the pensions industry. As professionals navigating this exciting landscape, embracing AI and all it brings can undoubtedly pave the way for fulfilling and progressive careers.
In conclusion, the rise of AI in the pensions industry is transforming the sector and creating and optimising new opportunities for professionals. AI is driving positive change and shaping the future of pensions. By embracing AI and leveraging its benefits, we can ensure the future sustainability and competitiveness of our industry.
Of course, human oversight will always have its place, and in some areas, it will be hard for technology to replace this. However, it would be true to say that the importance of fast and accurate processes is essential within not just the pensions industry but many.
Let's stay connected and informed, and collectively embrace these changes as the wave of AI is well and truly here.
References:
[1] Source: UK Artificial Intelligence (AI) Statistics And Trends In 2024 – Forbes Advisor UK)
[2] Source: (source: https://www.linkedin.com/pulse/unleashing-ais-potential-netherlandsleads-charge-scaled-tangirala-nugwe/
Article by BranWell Ford