Home Government How the UK Government Utilizes AI to Fight Welfare Fraud

How the UK Government Utilizes AI to Fight Welfare Fraud

Investing in data strategy, recruitment of skilled data experts and technologies that support artificial intelligence and machine learning makes up the UK government’s key priority.

As such, Ministers drawn from the Department for Work and Pensions have released and tested artificial intelligence for not only automating claims processing but also fighting fraud in their department.

In the course of the past one year, the department rolled out AI algorithms for tracking down massive corruption cases pertaining to the welfare and benefits program in a bid to curb criminal gangs behind huge losses.

In turn, this endeavor helps in safeguarding taxpayer’s money while ensuring that benefits reach the persons they are meant for.

Artificial Intelligence Recognizes Massive Abuse of the Benefits System

Benefit fraud resulting from criminal gangs caused the Department of Work and Pensions to incur losses amounting to £2.1billion back in 2016, which marks an increment of £200 million in one year’s time.

The losses caused by fraud are equal to the whole Foreign Office budget, which is about £1.1 billion per year. To curb this crime, ministers have rolled out artificial intelligence (AI) for detecting fraudulent claims.

What’s more, the algorithms search for patterns in claims such as the same applications or phone number documented in a similar style.

After a claim is identified as suspicious, a human investigator tries to assess whether the claim is fraudulent or not.

Artificial intelligence recognizes potential problems faster compared to human investigators who would have to evaluate each claim. Until recently, the Department of Work and Pensions was geared towards curbing individual benefit fraud.

In so doing, it investigated all the persons who had been identified as suspicious, particularly at job centers.

Through deploying artificial intelligence, billions of data items can now be reviewed quickly while claim payments and fake identity cloning methods can easily be detected and stopped.

AI algorithms are also used to go through social media accounts in a bid to identify inconsistencies found in the stories individuals narrate on social media as well as the claims they make for benefits.

In fact, lavish holiday events/ parties are identified as a red flag, especially if you are seeking for unemployment benefit claims.

How the UK is Committed to Data Technologies and Artificial Intelligence?

From the Industrial Strategy adopted by the UK government, it is clear that it is not one department that is devoted to broadening its technology capability.

Instead, it is a priority for the UK government as a whole.

The strategy claims that the government is geared towards investing in innovations in a bid to make “the country the world’s most innovative nation by 2030.”

AI set to Bring Massive Economic and Social Impacts on the UK

A report on the artificial intelligence industry in the UK said that the government foresees possibilities and a bright future for economic and social benefits from the revolutionary technology.

By 2035, it is expected that artificial intelligence could inject an extra £630 billion to the UK economy.

Furthermore, the report said the future will be realized only when AI continues to be created and applied.

Source Forbes

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KC Cheung
KC Cheung has over 18 years experience in the technology industry including media, payments, and software and has a keen interest in artificial intelligence, machine learning, deep learning, neural networks and its applications in business. Over the years he has worked with some of the leading technology companies, building and growing dynamic teams in a fast moving international environment.
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