AI and cloud technology make unemployment insurance easier to claim

According to a 2021 survey of U.S. state-level chief information officers, the epidemic has highlighted the value of technology and its importance to the provision of government services and the productivity of state employees. The survey also showed that the biggest driver for state governments is the need for digitalization: "to provide citizens with a better online experience."

Many states have had huge problems processing unemployment claims during the pandemic. The reasons for this vary, including the inability to perform the required work from remote locations, outdated legacy systems unable to handle an unprecedented volume of claims, overloaded phone systems, the inability to detect the high volume of fraudulent applications, and a lack of staffing and funding for system upgrades.

Since the outbreak began in 2020, states have been working hard to catch up and prepare for the future, but it remains challenging. An op-ed in a Nevada newspaper noted that the state had not yet completed processing claims from nearly a year ago.

The need is urgent as a new round of jobless claims could come with fears of a deepening recession.

States are trying to make necessary upgrades, but talent and funding are often obstacles. This is a huge challenge as state unemployment agencies need to jump from traditional systems to new models powered by the cloud and driven by disruptive technologies like artificial intelligence (AI).

Modern systems can help unemployment and other public sector agencies by leveraging cloud, artificial intelligence, blockchain and data management technologies. AI-driven systems are especially important for government agencies to best serve people's needs, automatically answer user questions in real time, distribute checks faster, and identify complex claims to aid human review. Advances in artificial intelligence software are now capable of transforming the unemployment insurance experience—from filing a claim to uploading proof of active employment weekly—no matter which device a claimant connects from. These next-generation systems can also help unemployed people find new jobs. New York recently implemented a new artificial intelligence platform to create rapid reemployment and enable long-term career planning.

Although the real solution is to replace the existing system with modern technology. But there are also dilemmas to face. Some states may choose to build their own, but lack the talent and time available. So some places are best accomplished with commercial applications running in the public cloud, designed by those with expertise in the design and implementation of state unemployment solutions. By running natively in the cloud, these systems will be virtually future-proofed and can be managed during future extreme events. Expanding the use of artificial intelligence and automation in these new unemployment systems will allow states to better manage workforce constraints, improve efficiencies, and stakeholder services and supports.

Before helping people find new jobs, the updated unemployment system will proactively notify and update aid applicants to ensure they always know the current status of their application: progress in the application process and a timeline for decisions and payments. Modern systems also offer a high degree of self-service, so applicants can not only submit applications online. They can also check the status of their claim at any time and get answers to their questions via chat or other resources to eliminate confusion and worry. At the same time, these systems will use artificial intelligence to identify fraudulent applications to facilitate the processing of legitimate claims and reduce waste.

Leveraging the latest technology to deliver a modern, scalable, responsive, future-proof unemployment system is now possible. Replacing legacy hardware and software with modern AI-powered cloud-native applications will be highly beneficial if society hopes to avoid the job-loss system collapse caused by the pandemic. It is reported that the U.S. Congress passed the 2021 "American Rescue Plan Act" to provide $2 billion in "epidemic" relief funds to the Department of Labor to help states upgrade their unemployment plans. The concern is whether a deeper recession will occur before these new plans can be implemented, putting greater pressure on existing systems.

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