How AI could make UI fraud easier

Source: Niskanen Center
by Matt Darling & Milan Singh

“Generative artificial intelligence (AI) is poised to transform various sectors, including unemployment insurance (UI) fraud. During the pandemic, expanded UI benefits led to a surge in fraudulent claims, exposing significant vulnerabilities in the system. AI may soon enable scammers to file fraudulent claims at an unprecedented scale. The government must act promptly to safeguard taxpayer funds and ensure rightful benefits reach eligible workers. Potential reforms include leveraging AI to screen claims and reinstating in-person verification processes. While advanced AI solutions are promising, low-tech approaches may offer the most immediate and reliable protection against fraud.” (06/10/24)