Generative AI to impact Korea’s insurance, finance sectors

Report also suggests a very low threat to human employment

Generative AI to impact Korea’s insurance, finance sectors


By Kenneth Araullo

A new collaborative report indicates that approximately 10.1% of tasks within Korea’s finance and insurance domains will experience alterations due to the influence of generative AI.

The report emphasises that industries dealing with substantial data volumes or intricate tasks are the ones poised to unlock the highest potential in the emerging technology.

Insights from the Korea Chamber of Commerce and Industry, co-authored by Microsoft and Access Partnership, highlight the finance and insurance sectors as those set to undergo the most significant impact from the emergence of generative AI.

As per Korea JoongAng Daily, ranked second in terms of impact are the science and technology industries, encompassing professions such as software engineers, with 9.6% of their tasks expected to be influenced by generative AI. Following closely are the information, wholesale, and healthcare sectors, each projecting 8.1%, 7.1%, and 6.7% of their tasks will be impacted by generative AI, respectively.

The report also forecasts that two-thirds of Korea’s working population will integrate generative AI into anywhere between 5% and 20% of their tasks in the coming years. However, the adoption of AI in more than 20% of tasks is projected to be limited to only 1% of the workforce, suggesting that the rise of generative AI is not a substantial threat to human employment.

Furthermore, the report also presents a compelling economic angle: if Korean manufacturing companies swiftly implement generative AI at their production sites, the potential increase in productive capacity could amount to a staggering $476.3 billion. This figure equates to 20% of Korea’s nominal GDP from the previous year.

Separately, some in the country’s insurance sector recently raised issues with its adoption of IFRS 17, with some companies allegedly using the regime’s loopholes to exaggerate their earnings in their latest financial reports.

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