International Business Machines Corp. (NYSE:IBM) Artificial Intelligence tool Watson is already sending shockwaves in Japan as companies start to deploy the technology at the expense of human labor. It is becoming clear that in the years to come such technologies could disrupt job markets as firms explore ways to trim costs and improve productivity.
Watson For White Collar Tasks
Fukoku Mutual Life Insurance is one such company that has started to leverage the capabilities of the IBM artificial intelligence tool, to analyze insurance claims. In return the Japanese company has sent 34 human insurance claim workers packing as it continues to trim jobs that the artificial intelligence tool can do with high levels of efficiency.
Watson has reportedly been programmed to scan hospital records among other documents all in the effort of determining the necessary insurance payouts. Fukoku has since set aside $1.7 million to install Watson and now expects savings of up to $1.1 million per year on employees because of the ongoing automation.
Cost Savings with AI
The fact that Fukoku expects to see a return on Watson Investment in less than two years could spell more trouble for white-collar jobs going forward. Big companies looking to trim their expenditure on labor could soon be swayed to deploy the artificial intelligence tool, which continues to prove itself when it comes to improved productivity and reduced costs.
“AI’s initial impact primarily relates to improving efficiencies and automating existing customer-facing, underwriting and claims processes. Over time, its impact will be more profound; it will identify, assess, and underwrite emerging risks and identify new revenue sources,” Writes Price Waterhouse Cooper.
Three other Japanese insurance companies have already started to test AI systems with a view to implementing them, spelling further trouble for white-collar workers. Artificial intelligence systems in the coming years are poised to take over a good number of jobs in the insurance and financial services are given that most of the jobs in these sectors can be handled by simple codes.
Spelling more trouble for white-collar workers around the world is an admission by Harvard Business Review that robots may, after all, be here to stay.
IBM stock was down by $0.61 in Monday trading session closing the day at $165.99 a share.