Yahoo Finance Social Security: 3 Ways AI Could Improve This Outdated System
Artificial intelligence will likely have a major impact on the Social Security system in coming years — but not necessarily for good reasons. The most significant near-term impact is that AI might make it easier for criminals to commit fraud against beneficiaries, according to Social Security Administration officials. Earlier this year, SSA Inspector General Gail Ennis sent a memo to Acting SSA Commissioner Dr. Kilolo Kijakazi warning that “criminals will use AI to make fraudulent schemes easier and faster to execute.”
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While the agency gets its arms around that threat, other uses of AI for Social Security have been put on the back burner. However, you can expect that the SSA at some point will take a hard look at how AI can improve the program, as there’s a lot that needs improving.
The main area of potential improvement is customer service, which has reached a point of “crisis” due to underfunding and understaffing, according to a press release issued earlier this year from the American Federation of Government Employees (AFGE), a labor union that represents 750,000 federal and D.C. government workers.
As previously reported by GOBankingRates, the AFGE noted that over the last decade, the number of Social Security beneficiaries has increased by 25% while the SSA’s operating budgets have decreased. Hiring has fallen by half in recent years, contributing to a shortage of workers that put SSA staffing levels at a 25-year low at the end of fiscal year 2022.
The role AI ultimately plays in correcting these and other SSA problems has yet to be determined. In October, President Joe Biden issued an executive order on AI citing government benefits programs as an area where the technology could be helpful. However, the main focus now is on U.S. Department of Agriculture programs such as food stamps, formally known as Supplemental Nutrition Assistance Program (SNAP) benefits.
But regardless of the government agency, AI has the potential to help fix operational problems – if it is implemented correctly. Here are three ways AI could improve Social Security.
Customer Service
This is a major issue that the SSA needs to fix, and AI has been used in many other applications to improve customer service through AI-powered virtual assistants and chatbots. As Forbes noted, these tools have streamlined and improved support by providing instant answers to customer queries, 24/7. Using virtual assistants can also address the staffing shortages at the SSA.
Data Entry and Analysis
In 2023, an average of nearly 67 million Americans per month received a Social Security benefit, according to the SSA, totaling about $1.4 trillion in benefits paid. That’s a whole lot of data to keep up with — and every year millions more Americans apply for Social Security benefits. As evidenced by the SSA’s overpayment scandal, getting data wrong can have far-reaching consequences.
Many government entities still rely on manual data entry or verification, according to a blog on the V7 Labs website. V7 cited a Governing magazine report which found that more than half (53%) of local government officials can’t complete their work on time due to “low operational efficiencies” such as manual paperwork, data collection, and reporting. The SSA could use AI to help streamline the data process, freeing up more time and resources to focus on other things.
Security
AI is considered a major threat to Social Security in terms of fraud and cybercrime, which means AI could also be the best defense against those threats. As V7 noted, government organizations can use AI to do the following:
Monitor unusual network activity and entry points.
Identify potential data vulnerabilities and fortify access restrictions to critical data.
Improve the accuracy of intrusion detection systems.
Simulate cyberattacks in controlled environments to identify system vulnerabilities.
Automate system patching and security updates.
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Whether (and when) these types of initiatives are put to practical use is unknown, though the rise of AI in all aspects of society makes it almost inevitable that the SSA will incorporate AI in the not-too-distant future. The challenge now is determining where AI can make the most immediate positive impact and then training staff on how best to implement AI strategies, experts say.
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This article originally appeared on GOBankingRates.com: Social Security: 3 Ways AI Could Improve This Outdated System
