Public employee pension systems are beginning to explore how artificial intelligence can enhance their ability to communicate more effectively with the people they serve. While many AI tools were initially developed for marketing or customer service, the same concepts can also help retirement systems explain complex benefits in clearer and more timely ways.

A recent video conversation from McKinsey and Company highlights how organizations are using AI to personalize the information they share. In the discussion, McKinsey experts explain that many organizations are moving away from broad, general communication and toward more personalized interactions. They note that AI can help deliver information that feels more timely and relevant, and that generative AI is making this process easier to scale.

Although McKinsey primarily focuses on private companies, the main idea also applies to public pension systems. When information is presented in an easy-to-understand manner and at the right time, members are more likely to take the right actions and feel confident about their benefits.

There are also lessons to be learned from the defined-contribution world. A report from FinTech Weekly describes how AI is helping 401(k) providers send helpful reminders, financial tips, and simple educational messages. While 401(k)s differ from public pensions, the communication ideas are still beneficial. Tools that provide gentle nudges, adjust information based on someone's life stage, or simplify complicated topics could help pension members stay informed without adding more work for staff.

The pensions industry is also exploring these possibilities. An article from Pensions Age notes that AI can help retirement providers improve member communication and administrative efficiency. This is especially relevant for smaller systems that have limited resources. Even simple AI tools can help reduce repetitive questions and clarify communication.

AI is also influencing actuarial work. A study on arXiv titled "Actuarial Learning: Mortality Modeling with Machine Learning" explains how machine learning can support mortality forecasting and other long-term planning tasks. These tools do not replace actuaries, but they may offer helpful new ways to examine trends and long-term financial risk.

For trustees, the growing interest in AI comes with essential oversight responsibilities. Any use of AI must comply with state laws, protect member information, and facilitate accurate and clear communication. Systems should also think about how AI fits into their long-term plans and how staff will review AI-generated content before it is shared with members.

Even with these responsibilities, the potential benefits are meaningful. Pension systems manage complex information, and members often require assistance in understanding their options. AI tools that offer reminders, simple explanations, or timely updates can make the process easier for everyone. These tools may also reduce the number of calls or emails staff must answer, which is especially helpful for smaller systems with limited staff.

As AI becomes more prevalent across industries, public pension systems can leverage these tools in a manner that fosters transparency, service, and trust. Trustees and administrators do not need deep technical knowledge. What matters is understanding the possibilities, asking good questions, and choosing tools that help members feel informed and confident about their retirement benefits.

About the Author: Allen Jones serves as TEXPERS' Director of Communications and Event Marketing. He brings more than two decades of experience in journalism and publication management and now guides the Association's strategic communications. Allen is certified in Prompt Engineering for ChatGPT by Vanderbilt University and holds an AI Certification from Writing.io, which supports his work in analyzing how artificial intelligence and technology trends shape public pension governance and member communication. [email protected]