States are turning their public benefits systems over to AI. The results have often led to 'immense suffering'
Briefly

Michigan's attempt to cut unemployment program costs by implementing an automated fraud detection system led to significant harm, as 70% of the 63,000 accused cases were false. Residents faced harsh penalties, aggressive collection, and some reported suicidal thoughts due to the strain. The state ultimately recognized its system's failures in 2016, transitioning to human review. A broader report revealed similar issues across public benefit programs that rely heavily on automation, suggesting a common vulnerability in supporting low-income individuals.
In 2016, Michigan admitted to the failures of its $47 million automated fraud detection system, now reviewing all cases with human employees to correct false accusations.
The traumatic impact of false fraud accusations led the University of Michigan to add a suicide hotline to its unemployment insurance clinic website after many residents reported suicidal thoughts.
Read at Fast Company
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