Key facts
- Pension funds urged to assess AI-related exposure.
- Trustees should challenge advisers on portfolio resilience.
- AI is increasingly embedded across sectors, creating potential hidden exposure.
The Pensions Regulator (TPR) on Thursday urged British pension funds to assess and stress-test their exposure to artificial intelligence-related risks, warning that even diversified portfolios could have hidden concentrations due to AI's increasing embedment across sectors. Trustees were advised to challenge their advisers on how severe market downturns could impact their investments. Ben Gunnee, executive director of market oversight at the TPR, stated that all pension schemes must maintain investment governance standards and manage risk over the short, medium, and long term. The Bank of England had previously flagged concerns in July about a lack of transparency in some AI funding arrangements, suggesting a selloff in highly valued AI stocks could have a broad impact. Global corporate investment in AI-related activity more than doubled in 2025, according to the Stanford Institute for Human-Centered Artificial Intelligence's 2026 AI Index Report.