Artificial Intelligence (AI) Agents in Asset and Liability Management (ALM)

This presentation provides a concise introduction to key concepts of large language models (LLMs), including the Transformer architecture, self-attention mechanisms, pre-training, finetuning, next-token prediction, temperature control, prompt engineering, and RetrievalAugmented Generation (RAG). Building on these foundations, we will explore the design, implementation, and performance of AI-driven agents within a SaaS platform for Asset-Liability Management (ALM) modeling. By leveraging AI, ALM processes can more effectively manage risks and optimize portfolio performance across diverse market conditions, surpassing the capabilities of traditional approaches. The integration of AI into ALM frameworks offers actuaries innovative tools to enhance risk management strategies, delivering greater value to stakeholders in today’s dynamic and unpredictable economic environment.