Recordkeepers Face 2026 Threats as AI Costs Rise and Fees Squeeze Margins
Updated
Updated · Wealth Management · Jun 22
Recordkeepers Face 2026 Threats as AI Costs Rise and Fees Squeeze Margins
1 articles · Updated · Wealth Management · Jun 22
Summary
A DCIIA/TRAU study of 15 defined-contribution recordkeeping executives found firms entering 2026 under what some described as existential pressure from fee compression, rising technology spending and unresolved AI risks.
Fee pressure is being driven by a pincer effect: plan sponsors and advisers are less willing to pay current rates even as service demands rise, including from small and start-up plans.
Recordkeepers are responding by chasing new revenue—especially wealth services for terminating participants—but said innovation across retirement, legislative change and fraud defense is adding cost and operational complexity.
AI is already being adopted across the industry, yet executives questioned its accuracy, liability and staffing impact, with some predicting headcount could be cut by half within two to three years.
Plan sponsors remain skeptical that AI can deliver speed and personalization without creating fiduciary risk, leaving recordkeepers unsure whether their main hoped-for solution will win broad acceptance.