The Right Tool for The Job? Assessing the Use of Artificial Intelligence for Identifying Administrative Errors

This article explores the extent to which machine learning can be used to detect administrative errors. It concentrates on administrative errors in unemployment insurance (UI) decisions, which give rise to a public values conflict between efficiency and effectiveness. This conflict is first described and then highlighted in the history of the US UI regime. Machine learning may not only mitigate this conflict but it may also help to combat fraud and reduce the backlog of claims associated with economic crises such as the COVID-19 pandemic. The article uses data about improper UI payments throughout the US from 2002 through 2018 to analyze the accuracy of random forests and deep learning models. We find that a random forest model using gradient descent boosting is more accurate, along several measures, than every deep learning model tested. This finding could be explained by the goodness-of-fit between the machine learning method and the available data. Alternatively, deep learning performance could be attenuated by necessary limits to publicly-accessible claims data.