The Department for Work and Pensions DWP has provided new details on how it is using artificial intelligence AI to assist in decisions about benefit applications.
The department has confirmed that AI is being used in the processing of Employment Support Allowance ESA claims but emphasized that human agents still make the final decisions.
AI Tool
The AI system, known as online medical matching, has been in use since July 2020. It is designed to match a claimant’s reported medical condition with a centrally maintained list to determine the closest match.
- The system reports an 87 percent accuracy rate in making initial matches.
- It then automatically registers the claim in the ESA system using an automated registration solution.
- A DWP agent reviews the case and makes the final decision on whether the claimant will receive ESA benefits.
Since its launch, the AI tool has processed over 780,000 cases and saved an estimated 42,500 operational hours.
Challenges
The initial version of the AI tool, used between 2020 and 2024, was only 35 percent accurate, meaning that human agents had to correct most results.
This issue arose because the algorithm originally relied on exact spelling matches rather than understanding the context of a medical condition.
Developers have since improved the tool, and it now achieves a much higher accuracy rate.
Concerns
While automation has helped speed up processing times, concerns remain about its fairness and transparency.
- In December, it was revealed that another DWP machine-learning system used to detect welfare fraud showed bias based on age, disability, and nationality.
- A report found statistically significant disparities in the way the fraud detection AI flagged certain groups.
However, the DWP argues that the ESA matching tool has a low risk of bias, since it only analyzes the medical conditions provided by the claimant and does not receive personal details such as age or nationality.
Human Oversight
The DWP insists that AI does not replace human decision-making. Every ESA claim is still reviewed by a human agent before a decision is made.
To prevent over-reliance on AI-generated results, DWP staff have been trained to check AI recommendations rather than accepting them without review.
A spokesperson from the DWP stated:
“We are using artificial intelligence to improve efficiency and enhance customer experience, but benefit award decisions are always made by a human caseworker. Anyone who disagrees with a decision can appeal.”
More Transparency
The DWP first shared details of the ESA matching tool in January 2025 on the government’s official algorithm transparency register. However, despite a year-long requirement for government departments to disclose AI tools, the ESA system is the only AI tool that the DWP has made public.
The department has confirmed that it maintains an internal inventory of all AI tools but has so far declined to publish a full list. In response to a freedom of information request, the DWP stated that it reserves the right to control how and when it shares information.
Future of AI
In January, Prime Minister Keir Starmer announced Labour’s plans to expand the use of AI across public services, including welfare, healthcare, and education.
The government believes that AI can improve efficiency and “revolutionize” services, but critics argue that greater transparency and accountability are needed to ensure fairness.
As AI continues to play a larger role in decision-making processes, it remains crucial that claimants understand how these systems work and have clear routes to challenge errors or unfair outcomes.
FAQs
What AI tool does the DWP use for ESA claims?
The DWP uses an AI system called online medical matching.
Do humans still make the final benefit decision?
Yes, a DWP agent reviews every ESA claim before approval.
Has the AI tool caused errors in benefit decisions?
The first version had a low accuracy rate, but improvements have been made.
Can claimants challenge AI-based decisions?
Yes, claimants can appeal any decision made on their ESA claim.
Will the DWP disclose all AI tools it uses?
The department has resisted calls to publish a full list of AI systems.
