UK regulator urges pension trustees to stress-test over AI concentration risk
QQQ•Britain’s Pensions Regulator urged trustees to assess direct and indirect AI exposure and stress-test portfolios, warning that apparently diversified investments may have hidden exposure. Global corporate investment in AI-related activity more than doubled in 2025, a report said.
1. Trustee risk assessment
The Pensions Regulator urged pension trustees to challenge advisers on how market developments and a downturn could affect their portfolios. It said AI’s growing presence across sectors could leave apparently diversified investments with hidden exposure, and recommended assessing exposure across asset classes and stress-testing portfolios under severe market stress.
2. Potential market impact
The regulator’s executive director of market oversight, Ben Gunnee, said schemes must maintain investment governance standards and manage risk over the short, medium and long term. A Bank of England report in July also flagged that a lack of transparency in some AI funding arrangements could make the extent of the risk hard to identify, while global corporate investment in AI-related activity more than doubled in 2025, a report said.
