Gen-Super: Achieving Efficiency, Increasing Financial Literacy, Going for Scale

In an era marked by rapid technological advancements, the superannuation industry stands at the precipice of transformation. In April 2024, Innovatus Media and Avanade hosted an executive breakfast entitled: “From customer to life centricity: How AI is impacting the superannuation industry,”. The session brought together senior executives from Sydney’s superannuation sector to delve into artificial intelligence’s (AI’s) potential in addressing the industry’s most pressing challenges.

Alex Acworth, Managing Director – Financial Services at Accenture, Simon Thomas, Global Head of Data & AI at Avanade, and Saurabh Verma, Head of Financial Services at Avanade, kick-started the discussion with some key observations. The session navigated the complexities of AI adoption, uncovering operational efficiencies through Generative AI (Gen AI) and enhancing customer/member engagement. Here are some of the key takeaways.

The Competitive Arena

Since the advent of SuperStream in 2014, funds have been required to drive competitive outcomes for its customers/members. The evolving landscape, characterised by industry consolidation and the rise of mega-funds, has intensified the need for superannuation funds to harness technology not just for competitive leverage but for survival. The consensus is clear: in a tightening market, operational efficiency, return quality, and customer experience are not just metrics but lifelines.

Culture: The AI Catalyst

A key takeaway from the discussion was the indispensable role of culture in AI’s successful implementation. Integrating AI into the superannuation industry transcends technological upgrades — it’s a cultural shift. For AI to redefine how financial advisers engage with customers or identify operational efficiencies, thought leadership around these revolutionary tools is imperative. In essence, the technology’s potential is unlocked not just through investment but through an evolved fund ethos that embraces innovation.

The AI Process Paradigm

A critical insight emerged was the incompatibility of AI with inefficient legacy processes. The maxim “garbage in, garbage out” holds particularly true; automating an inherently flawed process is a recipe for compounded inefficiencies. This underscores the need for funds to think about their processes in greater detail before AI tooling can be layered over them.

Data: The Cornerstone of AI Success

The discussion underscored the critical importance of data quality and accuracy, especially in an industry like Superannuation governed by stringent compliance requirements. The golden age of Gen AI we’re entering is not just about the technology itself but about mastering the data it feeds on. Inaccurate data undermines the efficacy of innovations like language learning models (LLMs) and amplifies inaccuracies, making data integrity a cornerstone of successful AI integration.

Unlocking Gen AI’s Potential

The group identified member advice, operational efficiency, and customer experience as the key areas ripe for Gen AI applications. The transition to Gen AI, however, is contingent upon identifying use cases that align with positive objectives and getting the culture right around it. In doing so, the superannuation industry can unlock Gen AI’s full benefits, from enhanced decision-making and operational agility to personalised customer experiences.

A Vision for the Future

The executive breakfast illuminated the path forward for the superannuation industry and created a collective vision for an AI-enabled future. As the industry grapples with competitive pressures, regulatory complexities, and evolving customer/member expectations, Gen AI emerges as a beacon of efficiency, literacy, and scale.

As we stand on the cusp of this new era, the superannuation industry’s trajectory seems poised for a paradigm shift. By embracing Gen AI, the industry can transcend traditional barriers, fostering an environment where efficiency, literacy, and scale are not just aspirational goals but tangible realities. The journey from customer to life-centricity, powered by AI, is not just a path to competitive advantage but a bridge to a future where technology and funds converge to redefine Superannuation.