How the Kansas Department of Labor has implemented AI to make it easier to file for unemployment

The Kansas Department of Labor has implemented AI tools to modernize its unemployment insurance system, reducing benefits processing times by nearly 80% and enabling more than 90% of claims to be filed without agent assistance. Secretary Amber Shultz led the effort, which included internal chatbots for agents and public-facing chatbots for claimants, and the agency plans to expand AI use to predict call volumes and flag fraud.

Until a couple of years ago, the software running the state unemployment insurance platform in Kansas hadn’t been updated since the 1970s. Customer service agents had to keep five screens open at once while trying to help people filing for unemployment compensation; one of the tools was so old that it wasn’t even possible to use a mouse, and agents had to type commands into a command line. At night, the whole system had to shut down for batch processing, so if someone who’d lost their job tried to submit a claim at 9 p.m., they’d be frustrated to find that it wouldn’t work. The system finally got a revamp at the end of 2024—and now it’s continuously improving because of the implementation of artificial intelligence https://www.fastcompany.com/section/artificial-intelligence tools. Internal chatbots help customer service agents answer complicated questions from claimants or employers more quickly. “By design, unemployment insurance is extremely complex, and every claim is like a fingerprint—it’s unique,” says Amber Shultz, Kansas secretary of Labor, who has been leading the Department of Labor’s technological evolution. The AI tool searches internal information, forms, and other resources in real time while an agent is on the phone. To build the system, the team also used AI to search through its vast archive of documents, cleaning up duplicative or outdated information. As it’s used, the tool also helps the agency find commonly asked questions that it can answer on its website. Newly implemented chatbots also help people who are unemployed navigate the service, and as a result more than 90% of claims now don’t require talking with an agent. For those that do, staff has time to answer every phone call. In all, the changes have reduced benefits processing times by nearly 80%. The team is working on predictive AI tools, Schultz says, that can anticipate high call volumes and suggest that the call center temporarily add more representatives. The agency uses AI to create dashboards to help managers monitor and improve performance. AI tools also help flag fraudulent applications, and can find software vulnerabilities to protect the system from attacks by hackers. The agency is quickly finding new uses, though it’s intentional about the rollout. “We’re not just chasing the technology,” says Shultz. “We really look and evaluate to see if it can improve the experience for claimants and for staff.” It’s not likely to replace state employees, she says, but just to make it possible for a lean team to accomplish more with the existing workforce. The overall system will continue to change. “I think the thing that I’m most proud of is that we really changed the mindset of what government technology can be,” she says. “We aren’t just replacing those old legacy systems anymore. We really are building something that is more agile and data driven. And we as an agency are more willing to embrace any technology because we’ve seen what it can do for us.”