How Public Pension Systems Are Using Artificial Intelligence in 2026
By: Hank Kim, CEO, NCPERS
Artificial intelligence is quickly moving from a future possibility to a present-day reality for public pension systems. From drafting communications and summarizing documents to automating routine administrative tasks, AI tools are beginning to find a place in pension operations.
NCPERS 2026 Public Retirement Systems Study found that more than 35% of responding public pension systems are already using artificial intelligence for at least one purpose, a significant increase from prior years. Recognizing the growing interest across our membership, we conducted additional research to better understand how pension leaders are approaching AI adoption and what challenges they are encountering along the way.
The result is our newly released research brief, AI Adoption and Strategy in Public Pension Administration. The findings reveal an industry that is optimistic about AI’s potential, but thoughtful about its implementation.
New Research: AI Adoption and Strategy in Public Pension Administration
According to the survey, 58% of public pension leaders are optimistic or very optimistic about AI’s impact on defined benefit pension administration over the next decade. At the same time, respondents identified significant barriers and risks that continue to shape their approach. The most frequently cited obstacle was a lack of in-house technical expertise to evaluate or oversee AI tools, identified by 63% of respondents. Cybersecurity vulnerabilities associated with AI systems and vendors emerged as the top risk concern, cited by 43%.
Public pensions are not rushing headlong into AI adoption. Instead, they are taking a measured approach focused on productivity gains in lower-risk areas while maintaining strong human oversight. Across the systems we surveyed, AI is most often being used to support administrative efficiency, member communications, and information gathering. Nearly all respondents emphasized that human judgment remains the primary driver of decisions where AI tools are involved.
We believe this is a healthy approach. Public pension systems manage sensitive member information, oversee billions of dollars in assets, and carry significant fiduciary responsibilities. Caution is not a sign of resistance to innovation. It is a sign of responsible leadership. As technology continues to evolve, pension leaders must balance opportunities for efficiency and service enhancement with appropriate safeguards, governance, and accountability.
That balance begins with education and informed decision-making.
While 43% of respondents reported operating under internal staff guidelines and 18% have adopted formal board-approved AI policies, another 18% reported having no AI governance framework in place. For many organizations, developing governance structures remains a work in progress. This is an area where the public pension community can learn a great deal from one another.
How NCPERS Is Helping Public Pension Leaders Navigate the AI Era
At NCPERS, we are committed to helping our members navigate this rapidly changing landscape with confidence. Our role has always been to connect pension professionals with practical education, timely insights, and peer-driven solutions. AI is no different.
This summer, NCPERS launched a webinar series examining how emerging technologies are reshaping public pension administration. Our June webinar explored the evolving role of AI in pension operations. Last week, leaders from the Orange County Employees’ Retirement System shared lessons learned from their own technology transformation journey, including strategies for moving toward enterprise-wide AI implementation.
Later this month, NCPERS Director of Research Matt Eckel will take a deeper dive into the findings from our latest survey during a webinar focused on what the data tells us about AI in public pensions.
Our in-person events are also expanding the conversation.
In just a few weeks at NCPERS Public Pension Funding Forum, attendees will hear from Harvard’s Paulo Carvao as he examines the relationship between AI, economic growth, and the broader U.S. economy. Then, next month at the Public Pension HR Summit, sessions will address AI’s impact on workforce development, staff upskilling, and practical implementation strategies for human resources professionals.
What we hear consistently from members is that they want to understand how peers are evaluating AI vendors. They want examples of governance frameworks and policies that work in practice. They want opportunities to exchange ideas with colleagues facing similar questions. Most importantly, they want solutions grounded in the realities of public pension administration.
Because NCPERS brings together professionals from across roles, systems, and geographies, we are able to facilitate conversations that help members learn from one another’s experiences. Whether through research, events, Pension Fund Roundtables, or educational programming, we will continue creating opportunities for pension leaders to share what is working, learn from emerging challenges, and build confidence in their decision-making.
Artificial intelligence will undoubtedly shape the future of public pension administration. But technology alone is not the story. The story is how pension leaders adapt, govern, and innovate while continuing to uphold the promises they have made to public servants and retirees.
The long-term challenge is not whether AI can be implemented. It is how we implement it responsibly, transparently, and in a way that strengthens trust. That is a conversation worth having, and one NCPERS looks forward to leading alongside our members.