ActuaryGPT, a specialised AI tool built using OpenAI’s GPT Builder, offers tailored solutions for actuaries by integrating actuarial principles with cutting-edge technology. It assists in areas such as risk assessment, financial modelling, compliance, and strategic decision-making, using resources like life tables, actuarial formulas, and regulations (e.g., Insurance Act 1973 and Superannuation Industry Act 1993).

 

ActuaryGPT excels in automating routine tasks, such as data processing, basic risk modelling, compliance verification, and repetitive calculations, allowing actuaries to concentrate on strategic and interpretative work. It also performs advanced calculations, including Monte Carlo simulations, providing probabilistic insights into stock prices and financial trends. Additionally, it enhances decision-making with tools for scenario testing and predictive modelling, complemented by real-time regulatory updates and industry insights.

In a test, ActuaryGPT analysed 36 months of hypothetical stock price data, calculated daily returns, assessed risk metrics, and conducted a Monte Carlo simulation. The results highlighted future price probabilities and showcased the AI's ability to handle complex actuarial tasks while ensuring transparency by explaining its methodology step-by-step.

 

While ActuaryGPT automates routine tasks, it leaves actuaries to focus on roles that demand judgment, ethics, and communication, such as interpreting complex data beyond AI-identified patterns, engaging in strategic planning with ethical and stakeholder considerations, and translating technical findings into actionable insights for clients. To remain future-proof, actuaries must embrace AI and technological advancements, enhance their communication, leadership, and strategic skills, and commit to lifelong learning to adapt to emerging trends.

ActuaryGPT demonstrates the growing synergy between AI and actuarial science. Although its results are simplified versions of actuarial models, the potential for experienced professionals to deepen its application is immense. Its rapid development within 72 hours highlights the pace of innovation in AI and its transformative impact on the profession.

The profession is at a crossroads where actuaries can leverage AI tools like ActuaryGPT to enhance efficiency and focus on value-driven tasks. The future is uncertain but, as experts in risk and uncertainty, actuaries are uniquely equipped to adapt, thrive, and lead through this change.

 

References:

https://www.actuaries.digital/2024/10/28/an-interview-with-actuarygpt-the-actuary-of-the-future/