Public Pensions Embrace AI with Caution, NCPERS Research Finds

WASHINGTON, D.C., August 4, 2026 — Public pension leaders are optimistic about AI's long-term potential, but they continue to prioritize human judgment and risk management as adoption evolves, according to a new NCPERS survey.

The report, AI Adoption and Strategy in Public Pension Administration, finds that public pension systems are increasingly exploring artificial intelligence to improve administrative efficiency, member communications, and information gathering.

"What our research shows is that pension leaders are approaching AI thoughtfully and responsibly. Public pension systems manage sensitive member data, oversee significant assets, and operate under important fiduciary obligations," said Hank Kim, CEO of NCPERS. "The goal is not simply to adopt AI, but to implement it in ways that strengthen service, improve efficiency, and maintain the trust of members and retirees."

Among the report’s key findings:

• 58% of respondents are optimistic or very optimistic about AI's impact on public pension administration over the next decade.
• 96% report that human judgment remains the primary driver of decisions where AI tools are used.
• 63% cite a lack of in-house technical expertise as the top barrier to broader AI adoption.
• 43% name cybersecurity vulnerabilities associated with AI systems or vendors as their top risk concern.

The overall pattern of AI adoption is one of cautious, productivity-focused experimentation. Lower-risk operational functions, such as member communication, customer service, and administrative tasks, show the highest rate of active AI use.

"The data suggests public pension systems are taking a pragmatic approach to AI," said Matt Eckel, Director of Research at NCPERS.

"Leaders see clear opportunities to improve productivity and service delivery, but they're also asking important questions about governance, accountability, cybersecurity, and internal expertise. Perhaps the most significant finding is that the overwhelming majority of respondents continue to view AI as a tool to support human decision-making, not replace it."

Eckel will explore the research findings in greater detail during NCPERS' August 25 webinar, AI in Public Pensions: What the Data Tells Us, where participants will gain deeper insight into how pension leaders are evaluating emerging technologies and preparing for future adoption.

Read the full research brief, AI Adoption and Strategy in Public Pension Administration, now available on NCPERS’ website.

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