Sumitomo Life is investing 20 billion yen in AI technology to improve operational efficiency with a goal of reducing employee work hours by 10%, encouraging workers to leave early.
Sumitomo Life Insurance's President, Yukinori Takada, revealed in an interview with Asahi Shimbun that the company plans to invest 20 billion yen over three years in the incorporation of artificial intelligence (AI) to enhance business efficiency. The aim is to reduce the working hours of in-office staff by 10% and utilize the freed-up time effectively, with Takada encouraging employees to leave the office earlier. This initiative is part of the company's broader strategy to improve work-life balance while also boosting productivity through technological means.
In addition to AI integration, Takada announced that Sumitomo Life expects to allocate between 500 billion yen to 1 trillion yen for growth investments and increasing dividends for policyholders from 2026 to 2028. This financial strategy is bolstered by the success of the Vitality insurance product, which adjusts premiums based on health parameters and has seen an impressive growth in membership, now totaling 2.33 million, doubling in the last three years. The increase in market interest rates, following the Bank of Japan's recent projection of interest hikes, has also enhanced operational profits derived from insurance funds.
The implementation of AI could lead to potential labor downsizing; however, Takada emphasized that the goal is not to reduce the workforce but to reposition employees into different roles as needed. This reflects a growing trend in the corporate sector where companies aim to balance technological advancements with personnel development, fostering an environment where employees can thrive and contribute more significantly to their organizations as they adapt to new technologies.
