Artificial intelligence holds the potential to transform pension fund management, reducing costs, enhancing returns, and identifying risks. Mercer’s research reveals the impact of AI on global pension systems.
Mercer’s CFA Institute global pension report underscores the significant potential of artificial intelligence in revolutionizing pension fund operations. While AI promises to lower costs, elevate investment returns, and pinpoint risks, challenges remain. Dr. David Knox, Mercer’s senior partner, highlights how AI can enhance the member experience and retirement outcomes. Furthermore, natural language AI tools can scrape data from member communications, enabling personalized marketing and outreach. AI analysis identifies market patterns and sentiment for unconventional investment opportunities, optimizing asset allocation and diversification. It also aids in assessing environmental, social, and governance factors. Automation in middle and back office operations reduces costs, closing the gap between passive and active investment strategies.