PASA publishes new ‘Data for AI’ Guidance to help the industry embrace innovation responsibly

The Pensions Administration Standards Association (PASA) has published new industry guidance on the ‘Use of AI in Pensions Administration – Embrace the Opportunity with Caution.”

The guidance provides practical support for schemes, administrators and trustees to understand both the opportunities and the risks of adopting Artificial Intelligence (AI) within administration. It highlights high-quality data as the bedrock of AI and sets out examples of current and emerging uses of AI in pensions, from chatbots and predictive analytics to fraud detection and intelligent document processing, alongside clear risk management considerations.

Comment

While AI is already transforming the way administration operates and interacts with members it brings real challenges in data governance, ethics and transparency. The guidance aims to help schemes navigate the AI space, embracing innovation while ensuring data quality, trust and robust oversight (and appropriate human intervention) remain paramount. 

The value of AI depends entirely on the quality and integrity of the data behind it. The PASA guidance sets out practical steps to help organisations assess their data readiness, understand the risks and build appropriate governance frameworks. 

The publication supports the direction outlined by the Regulator’s Digital, Data and Technology Strategy and the FCA’s AI Update, both of which emphasise responsible innovation and robust data management. It encourages trustees and administrators to take proactive steps to understand how AI is being used and to keep data quality at the top of their agenda.