Submitted by: Dorota Kowalczyk - South Africa 

With the introduction of AI, there is a significant risk of job losses across multiple industries. Current unemployment funds provide a monetary benefit to individuals upon job loss. However, these benefits are not payable if the individual has stopped searching for a job. This does not meet the needs of individuals who have become obsolete as a result of being replaced by AI, as these individuals don’t have support to upskill and are unable to search for a replacement job. Two commonly suggested solutions to this problem include individuals upskilling themselves or offering individuals a universal basic income. Numerous concerns associated with both of these solutions have been raised. 

Actuaries have historically been involved in managing unemployment funds but have a significant opportunity to utilise machine learning and AI to manage the risks associated with AI-related job losses. By designing and managing an unemployment fund which not only provides financial support on job loss, but both pre-empts job obsolescence and creates and supports personalised upskilling programmes for both employed and unemployed individuals through an underlying AI system, significant potential can be unlocked. This can transform job obsolescence risks into considerable opportunities for individuals, the economy and society.