Benjamin Harvey, Ph.D.’s Post

When the risk pays off...

AI Endowment Policy! you tuck away a portion of your hard-earned money each year, and decades later, it blossoms into a significant financial gift for yourself or your loved ones. That's the basic premise of endowment policies, a long-term savings vehicle often touted for its stability and guaranteed growth. But in today's tech-driven world, a new buzzword has emerged: AI Endowment Policies. #EndowmentPolicy

AI: Revolutionizing Compliance in Retirement Plan Administration In the complex world of retirement plan administration, staying ahead of regulatory compliance is a constant challenge. Artificial Intelligence (AI) is reshaping this landscape, offering tools that simplify compliance tasks and ensure that plans adhere to the latest regulations with unparalleled accuracy. AI systems can monitor and analyze regulatory updates in real-time, automatically adjusting plan operations to maintain compliance. This proactive approach eliminates the risk of non-compliance and the potential for costly penalties, providing peace of mind for plan administrators and participants alike. Furthermore, AI enhances the efficiency of compliance processes, from reporting to audits, by automating routine tasks and identifying potential issues before they become problems. This allows administrators to focus on strategic initiatives, knowing that compliance is in capable hands. By integrating AI into compliance strategies, retirement plan services do not just meet the minimum standards but set new benchmarks for excellence in regulatory adherence and operational efficiency. #Compliance #AI #RegTech #RetirementPlanning

But to gain a more nuanced perspective on these developments, it is important to look at the ways AI will change the industry, how it won't, and the challenge facing many TPAs to incorporate this new technology into their business

I had the privilege of speaking on a panel at the #NextGen conference on Friday, alongside Will Henderson, Co-Founder and CPTO of Knowa. We were talking about AI in pensions, and what it will mean for our industry as well as for individual carer progression. I don’t think anyone will dispute that the world of AI is moving at breathtaking speed. I’m often asked one of two questions about AI: how do I not get left behind? or;  how do I get started? And OpenAI is releasing new functionality all the time. I wanted to know more about the latest update, so I asked my CTO for their opinion. While there are a number of parts to the change, one of the most significant is the way in which you can ask questions. This means that the model can be forced to always respond to our calls in a way that we can interpret the answer. This is powerful because quite often the model responds in an incomplete way and we have to try again until it works. This will be a big improvement. My advice to anyone is this: just start experimenting and playing around with AI. First, get a ChatGPT account (it’s free!) and begin using it. If you aren’t confident to try it out in a professional context, try using for a personal query. Second, find someone who knows more about AI than you do, and ask them for 30 minutes of their time. See what you can learn from each other – your questions should help hone their answers. Think of AI as your partner – what can you do together? How much further can you go, together? The shift in mindset is powerful. Try it, and see how much further, and how much quicker, you are able to go. #pensions #insurance #innovation #collaboration #fintech mallowstreet Well done to to the amazing #NetGen team! Caroline Escott Georgina Watson Joe Craig Tannaz Rastegar ACIM Matt DoddsAngela Sharma Christopher Timms, CFA Victoria Panormo Kim Brown (she/her) Emma Barry Martin Wigfield Katie Walker Sophie Lomax

🧠 Emotions and retirement planning: a crucial connection often overlooked. Until now. Grace, our conversational AI retirement friend, captures what you truly love and value. But it doesn't stop there... Fear can paralyze your financial decisions. Anger might lead to rash choices. Sadness could make you overlook opportunities. These emotions silently shape your retirement journey, often without you realizing it. Grace breaks down these emotional barriers by understanding and addressing the nuances that affect pre- and post-retirees' choices. My background in financial advisory and KYC due diligence has ingrained in me the importance of meticulous vetting. After reviewing countless platforms and developers, we chose Kore.ai for their leading conversational AI, and partnered with Virtual Emotion Resource Network-VERN to tackle the mental health aspect of retirement, a huge part of the retirement crisis. Excited for this partnership and guidance from Craig Tucker and his team! MyPlanKeeper.AI

Embracing AI for Enhanced Efficiency in Retirement Plan Administration In the evolving landscape of retirement plan services, embracing artificial intelligence (AI) isn't just an advantage—it's a necessity. AI technologies streamline operations significantly, making enrollment and compliance checks faster and more accurate. For plan administrators, this means reduced operational costs, enhanced participant satisfaction, and a marked improvement in compliance posture. But AI's impact goes beyond just automation. It introduces data analysis and decision-making support that humanizes the participant experience while keeping the administrative burden low. By leveraging AI, we're not just optimizing; we're transforming how retirement plans serve their participants, ensuring a future where plans are more responsive, personalized, and secure. The time to harness AI in retirement plan administration is now. It's not just about keeping pace—it's about setting the standard for efficiency, compliance, and participant satisfaction in the industry. #RetirementPlan #AI #Efficiency #InnovationInFinance

Today’s AI tip is about knowing when to retire an AI system. Sometimes, we need to say goodbye to AI systems. Retiring an AI system refers to decommissioning it or phasing it out from active use. This can happen for various reasons, and it involves stopping the model from making predictions or being used in a production environment. Let’s look at the considerations in deciding to retire an AI system 1. 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐝𝐞𝐠𝐫𝐚𝐝𝐚𝐭𝐢𝐨𝐧: Over time, an AI system may exhibit degraded performance due to changes in the underlying data it was trained on, or because the environment it operates in has evolved. This is known as concept drift. If an AI system cannot adapt to these changes or its performance falls below acceptable thresholds, it may be time to retire the system. 2. 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐢𝐜𝐚𝐥 𝐚𝐝𝐯𝐚𝐧𝐜𝐞𝐦𝐞𝐧𝐭𝐬: The field of AI is rapidly evolving. New algorithms, models, and methodologies are constantly being developed. If an AI system becomes obsolete because there are significantly more efficient, accurate, or safer technologies available, retirement might be the best option to make way for newer systems. 3. 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐯𝐮𝐥𝐧𝐞𝐫𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬: AI systems can have security vulnerabilities like any other software. If an AI system is found to have critical vulnerabilities that cannot be effectively mitigated, or if the cost of securing the system is prohibitive, retirement might be necessary to protect users and data. 4. 𝐄𝐭𝐡𝐢𝐜𝐚𝐥 𝐚𝐧𝐝 𝐥𝐞𝐠𝐚𝐥 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬: AI systems must operate within ethical and legal frameworks. If an AI system poses ethical concerns, such as bias or privacy issues, that cannot be resolved, or if it no longer complies with new laws and regulations, retirement is crucial to avoid harm and legal issues. 5. 𝐂𝐨𝐬𝐭 𝐯𝐬 𝐛𝐞𝐧𝐞𝐟𝐢𝐭: Maintaining AI systems can be costly, involving hardware, software, and human resources. If the cost of maintaining an AI system significantly outweighs its benefits, or if the ROI (return on investment) is no longer justifiable, it might be time to consider retirement. 6. 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐟𝐞𝐞𝐝𝐛𝐚𝐜𝐤: Continuous feedback from users and stakeholders is vital. If an AI system no longer meets the needs or expectations of its users or if it is not delivering value as intended, retirement might be the most appropriate action to take. 7. 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐟𝐨𝐫 𝐫𝐞𝐭𝐢𝐫𝐞𝐦𝐞𝐧𝐭: Knowing when to retire an AI system also involves having a retirement plan. This includes data migration strategies, transitioning to new systems, and managing the changeover process to minimise disruption.

AI: Facilitating Smooth Plan Transitions in Retirement Plan Administration Transitions in retirement plan providers or updates to plan structures can be complex and disruptive. However, Artificial Intelligence (AI) is revolutionizing this process, ensuring smooth transitions and less disruptive for administrators and participants. By leveraging AI, we can automate and streamline the data migration process, reducing errors and saving valuable time. AI algorithms can quickly analyze and reconcile large volumes of data, ensuring accuracy and consistency across systems. This capability is invaluable during provider changes or system upgrades, where data integrity is paramount. Moreover, AI-driven tools can predict and mitigate potential issues before they arise, providing administrators with actionable insights to address challenges proactively. This foresight minimizes downtime and ensures that participants experience minimal impact on their retirement plan services. Embracing AI technology in plan transitions is not just about enhancing efficiency; it's about redefining the standards of service continuity and reliability in the retirement plan industry. #PlanTransitions #AI #RetirementPlanning #Innovation

Gen Z is AI native? Living in an era where social media and internet emerged as everyday platforms, younger generations are no strangers to digitalization. And… what’s not so unexpected is 75% of them are very open using AI for money advice. A survey by Charles Schwab uncovered that Gen Z plans to retire at 61, earlier than others. This goal motivates them to take early steps as well, preparing for future financial safety. While saving money, they actively seek financial guidance, including by chatting AI chatbot. What about you? Comment your trust level in AI-financial advisor👇 #Fintelite #chatgpt #genz #personalfinance #AIinfinance