AI-Powered Pension Ecosystems: Transforming Claims, Payments, and Member Services
DOI:
https://doi.org/10.63282/3050-9416.IJAIBDCMS-V5I4P115Keywords:
AI, Pension Systems, Automation, Claims, Payments, Member ServicesAbstract
Pension systems provide significant protection for financial futures, especially for older individuals who need to receive payment immediately. However, these systems are struggling to meet growing demands, often due to older processes. The main areas of concern regarding the management of traditional pension systems are: inefficiencies tend to translate into higher operational costs; the risk of fraud; payment process delays; and the need for individualized service delivery and communication. These are weakening member confidence, and overwhelming financial institutions with the long-term security responsibility. AI can enhance the effectiveness of the pension systems by making them more accessible to users and assist in integrating aspects of automation, intelligence, and user-friendliness with variables of intelligence. AI can decrease claims processing, completely remove fraud processing, begin to forecast payment profiles, and enhance customer service through digital agents. Machine Learning and Natural Language Processing can also be used to validate AI-based claims processing, so less human input is needed to establish claim validity. Predictive Analytics ensures timely payments, and AI enables cost-effective, personalized customer service via accessible chatbots. AI can also enhance pensions by improving efficiency, reducing costs, and ensuring compliance. Pensions AI ecosystems foster trust through transparency and faster responses. Amid financial digital transformation, AI will help reinvent pensions as sustainable, equitable, and responsive
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