Japanese Company Fires Employees After Finding That Artificial Intelligence Could Do Their Jobs Cheaper And Faster

A Japanese insurance company has reportedly fired 34 employees, replacing them with IBM's Artificial Intelligence system, Watson Explorer.

reuters

Watson will scan hospital records and other documents for Fukoku Mutual, to identify how much insurance should be paid to claimants, a company press release said.

It can automate analysis of injuries, patient medical histories, and procedures administered.? This, in turn, will expedite how much payout is made.

The company will spend $1.7 million (200 million yen) to install the AI system, maintenance will cost another $128,000 per year for maintenance, Japan's The Mainichi. This may sound expensive, but it will save the company roughly $1.1 million per year on employee salaries, and generate a return on investment in 2 years. And, it will also boost productivity by 30%, the company said.

Will the employees find a job soon?

They leave work by March-end, but 3 other Japanese insurance companies are reportedly testing out AI to automate work.