Errors on the part of a case manager. Errors on the part of an applicant that are easily remedied.
Errors that result in UNDERPAYMENTS (i.e., if everything else in their "fraud rate" is "fraud" than those underpayment errors are frauds on the recipients, but somehow that NEVER gets mentioned).
And more states are using AI to detect these so-called "frauds" and automatically discontinue benefits (whether snap, unemployment, medicaid, whatever).
These are AI systems are KNOWN to be subject to hallucinations."
A bit from Gemini (view with the skepticism you apply to all AI)
When AI systems are used to detect welfare or benefit errors, the term "hallucination" refers to algorithmic fabrications—where the system invents non-existent evidence, misinterprets data, or confuses honest administrative and paperwork mistakes with deliberate fraud.
These inaccuracies have severe real-world consequences for individuals and governments:
Misapplied Penalties: Algorithms often fail to distinguish between clerical errors and active deceit, punishing vulnerable groups for simple mistakes.
High False-Positive Rates: In many automated welfare systems, improper payments or "fraud" determinations have alarmingly high error rates.
For example, in previous automated systems, independent reviews determined that up to 93% of fraud determinations were incorrect.
Systemic Examples: Automated anti-fraud systems have caused massive financial and personal hardship, most notably in Australia’s unlawful "Robodebt" scheme and in widespread false accusations across the US, UK, and Europe.
Legal and Reputational Blowback: Using flawed AI systems can lead to legal action and required multi-billion dollar payouts from governments and major consulting firms. For instance, a court ordered the Dutch government to repay thousands of dollars to families falsely accused of child welfare fraud.
Experts continually stress that because these systems lack true contextual understanding, they require strict human-in-the-loop oversight to verify flags and prevent automated discrimination.
Unfortunately, these systems are being deployed in some states with no human review until the applicant/recipient makes contact. Someone who is likely eligible but has been automatically deprived of benefits. And who may be going hungry, going without medical care, being kicked out of a subsided rental, and on and on, WRONGFULLY.
It is beyond lunacy and must END.
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