Japanese Insurance Company replaces Employees with Artificial Intellect

Japanese Insurance Company replaces Employees with Artificial Intellect

After factories, robots are invading offices too. The Japanese Fuoko Mutual Life Insurance is planning to replace 30% of its staff with artificial intellect, the Guardian says.

The system, based on IBM Watson, will have been installed by the end of March. As a result, 34 out of 131 employees will be made redundant.

The system will analyze statements of sickness and other documents to calculate insurance sums for the company’s clients.

The overall implementation of the system will cost about 1.6 mln euro, and yearly maintenance – about 120 000 euro.

This, however, is expected to save about 1.1 mln euros per year out of staff salaries. Thus the investment will repay itself in less than two years.

The company expects that artificial intelligence will boost its efficiency by 30 %.
Fuoko Mutual Life Insurance claims that no insurance sums will be paid before having been pre-approved by a human employee of the insurer.

According to the Guardian, another two Japanese insurance companies are planning to follow suit and incorporate artificial intellect systems to automatize their working process.

A 2015 research published by Nomura shows that by the year 2035, almost half of the available jobs in Japan will be occupied by robots.

Artificial intellect could soon be playing an important role in Japanese politics. In February 2017, Japan’s Ministry of Economy, Trade and Industry is planning to test-launch an artificial intellect system that will assist state employees in preparing answers for the ministers during Cabinet meetings and parliamentary sessions.

The Ministry hopes this system will save a lot of red-tape time spent preparing written answers.

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