Japanese insurer lays off staff, replaces them with AI
A Japanese life insurer is laying off 34 employees and replacing them with an artificial intelligence system that can calculate insurance payouts.
Fukoku Mutual Life Insurance believes the new AI system will increase productivity by 30 per cent, the BBC reported.
The insurer also expects to save around 140 million yen (A$1.65 million) a year in salaries after the 200 million yen (A$2.36 million) system is installed later this month.
Maintenance of the set-up is expected to cost about 15 million yen (A$177,000) annually.
“Fukoku Mutual will use the AI to gather the information needed for policyholders’ payouts – by reading medical certificates, and data on surgeries or hospital stays,” the BBC reported.
“Three other Japanese insurance companies are considering adopting AI systems for work like finding the optimal cover plan for customers.”
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