Independent expert Brian Lee-Archer on artificial intelligence in pensions and social security

ANNOUNCEMENT

 

Independent expert Brian Lee-Archer on artificial intelligence in pensions and social security

 

One of the current topics of our time, “The future of social and pension security systems: prospects and key drivers of development,” became the focus of discussion at a panel session as part of high-level international round table “Mandatory Funded and Mixed Pension Schemes Development Prospects” which took place on September 28, 2023. in Almaty.

The session was moderated by Kazakh financier Anvar Saidenov.

Session speaker Brian Lee-Archer, an independent expert (Canberra, Australia), spoke on the topic of one of the most promising technologies of recent decades, “Artificial intelligence – friend or foe for pensions and social security.”

The speaker noted that artificial intelligence has become an important component of the 4th industrial revolution and includes a wide range of developing and diverse technologies aimed at increasing automation, productivity, increasing coverage and scalability, and creating new business models.

In his report, he highlighted the term “digitization”, i.e. transferring a business process or part of it into digital form, as a rule, without significant changes in the final goals. Examples of digitization of processes include filing pension applications, decisions on which are made with minimal human control, making pension contributions, payments, registration, data exchange, etc. in online mode.

According to the speaker, another term “digitalization” is a slightly different concept; digitalization allows you to achieve new and better results in the process of introducing significant changes in business processes based on the understanding and knowledge obtained from the analysis of digital data. For example, this is the exchange of information between employers and pension and social security authorities, accompanying a smooth transition from work to retirement.

Artificial intelligence makes it possible to effectively use metadata (data that describes other data), cloud data stores that have scale, depth and long-term nature, and use cloud computing to model optimal solutions. Digitization and automation in social security management is a continuous path of discovery and productivity improvement.

During the report, Brian Lee-Archer analyzed such phenomena as “digital alienation” and “social isolation”, which are interconnected. Despite global digitalization, part of the population does not have digital skills and does not use the Internet. People who fall into this category are at risk of isolation. Thus, the digital divide becomes a new factor of social inequality and discrimination. The Internet provides an opportunity to acquire resources and knowledge, but lack of access exacerbates poverty and other problems of people. In this way, artificial intelligence can both help and exacerbate problems.

Describing the undeniable advantages and potential of artificial intelligence, Brian Lee-Archer noted that it can cause irreparable damage if it is not properly controlled. “Artificial intelligence is neither friend nor foe, it needs to be managed wisely, like all technological changes. Artificial intelligence opens up new avenues for human-centered solutions. But artificial intelligence must be used ethically and responsibly,” says Brian Lee-Archer.

 

The UAPF was established on August 22, 2013 on the basis of GNPF APF JSC. The UAPF founder and shareholder is the Government of the Republic of Kazakhstan represented by the State Institution “Committee of State Property and Privatization” of the Ministry of Finance of the Republic of Kazakhstan. UAPF pension assets are managed by the National Bank of the Republic of Kazakhstan. From January 1, 2016, the functions for developing proposals to improve the management of pension assets were transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, pension benefits, individual accounting of pension accumulations and benefits, provides the contributor (beneficiary) with information on the status of his pension accumulations (for more information visit www.enpf.kz)