TLDR: The Pensions Administration Standards Association (PASA) has released comprehensive ‘Data for AI’ guidance, urging the pensions industry to responsibly adopt Artificial Intelligence. The guidance provides practical support for schemes, administrators, and trustees to navigate both the opportunities and inherent risks of AI, emphasizing high-quality data as a foundational element for successful and ethical implementation.
The Pensions Administration Standards Association (PASA) has issued new industry guidance titled ‘Use of AI in Pensions Administration – Embrace the Opportunity with Caution,’ aimed at assisting the sector in adopting Artificial Intelligence (AI) innovation responsibly. Published on November 13, 2025, the guidance offers practical support for pension schemes, administrators, and trustees to understand the myriad opportunities and potential risks associated with integrating AI into administration processes.
The core message of the guidance underscores that high-quality data is the ‘bedrock’ upon which effective and ethical AI systems are built. It outlines various current and emerging applications of AI within pensions, including the deployment of chatbots and virtual assistants for member interactions, predictive analytics for forecasting trends, advanced fraud detection mechanisms, and intelligent document processing for enhanced efficiency.
However, PASA also highlights the significant challenges that AI introduces, particularly concerning data governance, ethical considerations, and transparency. The guidance encourages proactive risk management, emphasizing the need for robust oversight and appropriate human intervention to safeguard saver interests and maintain trust within the industry.
David Fairs, PASA Chair, commented on the release, stating, “AI is already transforming the way administration operates and interacts with members, but it brings real challenges in data governance, ethics and transparency. This guidance helps schemes and administrators navigate this balance, embracing innovation while ensuring data quality, trust and robust oversight remain paramount.” He further added that PASA would continue to champion responsible adoption as AI becomes more integrated into pensions administration, aiming to protect savers and support industry progress.
Kristy Cotton, Chair of the PASA Data Working Group, reinforced the importance of data integrity. “AI has huge potential to enhance efficiency and member experience, but its value depends entirely on the quality and integrity of the data behind it,” she noted. The guidance provides actionable steps for organizations to assess their data readiness, comprehend associated risks, and establish appropriate governance frameworks. Cotton urged the industry to be “curious, with caution, and ensuring AI works for the benefit of savers and the industry as a whole.”
Also Read:
- Singapore’s Financial Regulator Unveils Draft AI Risk Management Framework for Financial Institutions
- Generative AI Adoption Soars in DIFC as Financial Sector Embraces Innovation
The publication aligns with the strategic directions outlined by other regulatory bodies, such as the Pensions Regulator’s Digital, Data and Technology Strategy and the Financial Conduct Authority’s (FCA) AI Update. Both emphasize responsible innovation and stringent data management practices, encouraging trustees and administrators to actively understand AI’s usage and prioritize data quality.
