AI Case Study
Fukoku Mutual Life Insurance expects to save $1.2m a year from salaries by replacing 34 employees with an AI system that calculates insurance payouts.
Fukoku Mutual Life Insurance is replacing 34 staff with an AI system. The system, which is reported to be based on IBM Watson, is aimed at reading medical certificates, and data on surgeries or hospital stays to gather information for insurance payouts. The company is expecting to increase productivity by 30% while saving 140m yen (£979,500 / $1.2m) a year in salaries.
Industry
Financial Services
Insurance
Project Overview
"Fukoku Mutual Life Insurance is laying off the employees and replacing them with an artificial intelligence (AI) system that can calculate insurance payouts.
The firm believes it will increase productivity by 30%.
It expects to save around 140m yen (£979,500 / $1.2m) a year in salaries after the 200m yen AI system is installed later this month.
Maintenance of the set-up is expected to cost about 15m yen annually.
Japan's Mainichi reports that the system is based on IBM Japan Ltd's Watson, which IBM calls a "cognitive technology that can think like a human".
IBM says it can "analyze and interpret all of your data, including unstructured text, images, audio and video".
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."
Reported Results
"The firm believes it will increase productivity by 30%. It expects to save around 140m yen (£979,500 / $1.2m) a year."
Technology
Function
Human Resources
Employee Relations
Background
"A study by the World Economic Forum predicted last year that the rise of robots and AI will result in a net loss of 5.1 million jobs over the next five years in 15 leading countries.
The 15 economies covered by the survey account for approximately 65% of the world's total workforce."
Benefits
Cost - Job automation
Data
"IBM says it can "analyze and interpret all of your data, including unstructured text, images, audio and video".
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."