Ending Soon! Save 33% on All Access

Artificial Intelligence Is Taking The Place Of A Few Employees At This Company It was exactly a year ago, in January 2016, when the World Economic Forum released The Future of Jobs report that analyzed the possible impact of the "Fourth Industrial Revolution" on global labor markets.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.


It was exactly a year ago, in January 2016, when the World Economic Forum released The Future of Jobs report that analyzed the possible impact of the "Fourth Industrial Revolution" on global labor markets. The study stated that the global workforce needs to brace for significant churn in job roles, as "a net employment impact of more than 5.1 million jobs" worldwide could be seen over the period 2015-2020. If you think that just factory / blue-collar workers need to worry about the advent of robots, the study also noted that two-thirds of this job loss could be "in routine white-collar office functions." It's just been a year since this study, and perhaps worryingly, a few key findings are already taking shape.

According to Japanese national daily The Manichi, Japanese insurance company Fukoku Mutual Life Insurance is planning to lay off nearly 30% of its assessment department staff and replace them with an artificial intelligence (AI) system. The publication reports that in total, 34 people are likely to be made redundant by March 2017, and the company will spend "about 200 million yen" to install the AI system, "which is based on" IBM's Watson. As for the benefits, the company estimates savings of about 140 million yen annually by trimming down staff, and improved efficiency in tasks such as reading medical certificates and other documents assessed to make payouts. While the authority to determine payouts will be retained with human staff, the system is expected to help scan for special clauses or oversights.

This is not the first instance of use of AI among Japanese business houses. Perhaps owing to its population demographics (largely ageing workforce), and being leaders in adoption of advanced futuristic tech, Japan has already implemented use of AI and robotics in its industries. The Manichi counts Dai-Ichi Life Insurance and Japan Post Insurance as other insurance companies that have already introduced AI systems, although there are no reports of staff cuts.

Related: Virtual Assistants: The Growing Trend Of Outsourced Assistance For Entrepreneurs

Side Hustle

The Side Hustle He Started at Age 15 Led to a $4 Billion Boon for Small Businesses: 'They Would Take a Chance on Me With Their Hard-Earned Money'

Nic Beique asked his local barber, gym and more if they'd like him to build a website for their businesses.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

Your Face is Data — and Scammers Are Using it for Fraud. Here are 5 Tips When Using Identity Verification

In today's crowded identity verification market, selecting the most suitable option can be daunting. There are simply too many solutions to be considered and tested out. This article highlights the key criteria to pay close attention to when deciding.


Crypto Czar: Velas Co-Founder Alex Alexandrov Is All About Being Ahead Of The Curve

Alex Alexandrov, co-founder of Velas, on how it's time for entrepreneurs (and the industry) to leverage the cryptocurrency wave.

News and Trends

UAE-Based Param Labs Secures US$7 Million In A Funding Round Led By Animoca Brands, With Support From Delphi Ventures, Mechanism Capital, And Others

Strategic investments were made by Animoca Brands co-founder Yat Siu and FaZe Clan co-founder Richard "FaZe Banks" Bengtson as well.


16 Tips for Living a Happy Life Starting Right Now

Gratitude, a generous spirit and goals to work toward are the foundation of lifelong happiness. It's all within reach.