AI should reduce pension costs, highlight risks.

London:

The Mercer CFA Institute’s World Pensions Report said on Tuesday that artificial intelligence should improve pension performance by cutting costs and highlighting risks ahead, with the Netherlands topping this year’s index.

Additional uses of AI could include building customized portfolios and identifying market anomalies, the report said, although AI was unlikely to accurately predict market movements, it said. So the uncertainty will continue.

“The continued expansion of AI within the operations and decisions of investment managers can lead to more efficient and better-informed decision-making processes, potentially leading to greater real investment returns to pension plan members. ” said David Knox, Senior Partner. Mercer

The annual survey, sponsored by the CFA Institute Association of Investment Professionals in collaboration with Mercer and the Monash Center for Financial Studies, examines AI models used in new contexts to generate false information and pensions. He also pointed to the dangers of cyber attacks against Member data.

The Netherlands scored top marks in a survey of 47 pension systems worldwide for the level of private and public sector pension benefits available, the sustainability of the system and the quality of its governance, overtaking Iceland last year. top position.

Iceland ranks second and Denmark third in the 2023 index.