How AI is becoming a pensions powerhouse

In a word association game I played with ChatGPT, saying ‘pensions’ led to the following words: retirement, security, investment, annuity, savings. ​

I then played a new round and started with ‘AI’, and it responded with: robot, future, innovation, technology, automation. On the surface, these things couldn’t be more different, so why is AI becoming such a hot topic in the world of pensions? ​

1 in 3 use AI for their finances weekly​

Figures show one in three people in the UK now use AI tools weekly for financial tasks¹ – me included. The Pensions Regulator recently said, “AI technologies have the potential to radically improve how pensions are administered, how schemes invest on behalf of their members and how members can be engaged and supported to make better decisions.^{2’ ​}

They called out a few beneficial use cases, one being using AI to provide personalised support, answering members’ questions clearly and accessibly². This is fundamental in supporting members to navigate the often-complex world of pensions and investments. ​

As someone who is close to pensions every day, there are still questions I regularly have about products or investments. ​

InvestAI in the Scottish Widows app​

InvestAI is the conversational AI feature within the Scottish Widows app that helps members understand investing and pensions. It provides guidance to users rather than personalised advice, answering common questions and directing users to relevant app features or support. ​

It is well-governed, leveraging key group functions, and reflects Scottish Widows’ 200 years of expertise, supporting those that are asking financial questions with receiving positive outcomes. It uses a conversational format, which helps customers to frame questions in a way that they understand, and uses customer data where relevant to provide guidance and support. ​

Since launching InvestAI earlier this year, feedback shows that 92% of users feel very positive about it, with key conversation themes including general investment guidance, product guidance, analysis and app guidance³. Interestingly, we see lots of customers asking planning-related questions, which helps inform our future plans to develop the service.​

So far, I’ve personally used InvestAI mostly to explore investing concepts and gain some general investment insights – just don’t tell my financial adviser husband!​

We are currently expanding InvestAI to provide innovative, pension-specific support for Workplace members, centred on answering queries and building user confidence, allowing them to engage, query and converse with their scheme in ways that have not been possible in the past.​

We know many people lack confidence when it comes to making financial decisions, and investing knowledge should not be limited to those who take – and pay for – financial advice: that is why InvestAI exists. ​

Into next year and beyond, we will continue to develop our AI tools to help every member to plan for retirement and access coaching through a conversational experience. ​

InvestAI is just the beginning of our journey with AI and pensions. While these may seem like a juxtaposition in theory, in reality they are the future powerhouse of retirement planning.

1.  Lloyds Banking Group’s Consumer Digital Index, Lloyds Banking Group 2025​
2. AI plan, The Pensions Regulator, 2026​
3. Scottish Widows, 2026