One of the main ways in which AI creates risk in the pension industry is through how members use it
- If you as a member of the Shropshire Pension Fund puts your sensitive data into ‘public’ AI, this information will potentially be stored on the AI provider’s server, and the AI tool may be trained on that information.
This creates a cyber risk to our members through their use of AI.
There is also a risk to the pension fund if sensitive information relating to the fund is entered into ‘public’ AI tools. - As a member you may receive misinformation from AI about your pension rights generally or your actual benefits in the LGPS. You may rely on that information to your detriment.
Whilst the legal responsibility for this detriment is unclear, practically speaking, the Fund may still need to deal with one or two IDRP stages, plus a potential Pensions Ombudsman complaint because of the detriment.
