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Using AI to manage minimum income benefits and unemployment assistance: Opportunities, risks and possible policy directions

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  • Annelore Verhagen

Abstract

While means-tested benefits such as minimum income benefits (MIB) and unemployment assistance (UA) are an essential safety net for low-income people and the unemployed, incomplete take-up is the rule rather than the exception. Building on desk research, open-ended surveys and semi-structured interviews, this paper investigates the opportunities and risks of using artificial intelligence (AI) for managing these means-tested benefits. This ranges from providing information to individuals, through determining eligibility based on pre-determined statutory criteria and identifying undue payments, to notifying individuals about their eligibility status. One of the key opportunities of using AI for these purposes is that this may improve the timeliness and take-up of MIB and UA. However, it may also lead to systematically biased eligibility assessments or increase inequalities, amongst others. Finally, the paper explores potential policy directions to help countries seize AI’s opportunities while addressing its risks, when using it for MIB or UA management.

Suggested Citation

  • Annelore Verhagen, 2024. "Using AI to manage minimum income benefits and unemployment assistance: Opportunities, risks and possible policy directions," OECD Artificial Intelligence Papers 21, OECD Publishing.
    • Handle: RePEc:oec:comaaa:21-en
    DOI: 10.1787/718c93a1-en
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    More about this item

    Keywords

    Artificial Intelligence; Means-Tested Benefits; Minimum Income Benefits; Social Protection; Unemployment Assistance;
    All these keywords.

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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