AI Adventures at the IAA Summit

In our new series exploring Asian perspectives within the actuarial world - Asia Pacific Perspectives - within the actuarial world, we speak to Jacky Ng who shares his insights from the recent International Actuarial Association AI Summit in San Francisco.

What happens when you bring together over 50 actuaries from 20 actuarial associations under one roof for two days in picture-perfect San Francisco to discuss artificial intelligence?

Some of the most engaging and liveliest discussions I ever had in a room full of actuaries! Emotions ran high and we may have finally broken the stereotype that actuaries are conservative introverts - and we certainly need to!

Held on the 20-21 February 2025, the International Actuarial Association AI Summit: The AI Enabled Actuary, began with past IAA president, Charles Cowling, making a bold assertion that actuaries embracing AI will replace those actuaries that don't. Quoting from his presentation:

Dear Optimist, Pessimist and Realist,

While you guys were busy arguing about the glass of water, I drank it!

Sincerely,

The Opportunist

Is an AI enabled actuary possible?

With artificial intelligence hitting the news every day – be it advances or problems – the question on everyone’s mind was how can we propel the profession forward for actuaries to remain relevant, while adhering to the utmost integrity that we are synonymous with?

Having delivered materials across the five workstreams post the Singapore AI Summit, momentum continues be with us at this year’s AI Summit as we continued to discuss topics like:

1. Professionalism and ethics: Developing guidelines and principles for actuaries.
2. Education: Developing enhanced curricula and training modules to include AI.
3. The changing role of actuaries: Developing basic definitions of AI; areas where AI can augment actuarial work; encouraging development of appropriate actuarial expertise.
4. Governance – Monitoring and evaluating governance frameworks, policies and regulations; engaging with regulators, standard-setting bodies and policymakers.
5. Innovation: Cultivating a growth mindset among actuaries.

One of the highlights of the innovation workstream is a brand-new collaboration platform where IAA AI Taskforce materials will be available. Do check it out!

Why aren’t all actuaries embracing AI?

As delegates pondered what is holding actuaries back from truly embracing AI, things got a bit emotional during an interactive Q&A session.

Questions were raised on the performance evaluation of AI/Large Language models. Can we really trust them if they give you slightly different answer each time? Every new version is x% better than the previous ones. These are all relative measurements but what about the absolute/traditional performance metrics that actuaries are accustomed to?

These questions led to a healthy debate that the actuarial profession needs to have as actuaries from around the world chart their own path in evaluating and embedding AI in their workflow.

Having laid the groundwork during 2024 on the "principles", the AI Taskforce will turn its focus to "practice" in equipping the AI Enable Actuary. For now, there are now four workstreams:

1. Engagement and foundations: Promoting engagement, building and growing the community of actuaries using AI, as well as providing an easy way for actuaries to get started in AI.
2. Research and advancement: Scanning the AI environment relevant to actuaries and supporting the education of actuaries in this field.
3. Case Studies and tools: Collect, house and organise tools and workbenches for actuaries to use in practice
4. Adoption framework: Focus on adoption, incorporating best practices, professionalism, governance, ethics as well as practicality aspects.

With the ever-increasing pace of advancement in AI, I recommended checking this resource regularly as it is envisioned to be updated continuously with materials from each workstream.

A human touch

While the Summit was all about AI, we should not forget about connecting with our fellow human beings!

Who would have thought I will be having lunch with fellow Institute member Michael Storozhev in San Franciso, having missed his sharing session in Hong Kong back in 2023 or catching up with our very own Bozenna Hinton, the current IAA President?

It's also about indulging in the local culture – there was an ice hockey decider between America and Canada during the first night of the Summit. You can immediately tell who's American and who's Canadian, much like the Aussies vs. the Kiwis!

That's all? Nah. San Francisco won't be complete without cycling across the Golden Gate Bridge – with fellow actuaries from Hungary! Or that fabled self-driving Waymo, I shall ride. The AI feature really mimicked an experienced driver!

Why those Yodish? Because there is a Yoda Fountain in San Francisco, which I was given a personal local tour by Ron Kozlowski, a general insurance actuary veteran that I worked with in Hong Kong over a decade ago. Ron also made me run over ten miles around Golden Gate Park – but there is no Golden Gate Bridge in sight. Instead, there were bisons and Ron tried desperately explaining what there were, how they are different from buffalos! I thought they were simply cows?!