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Will Artificial Intelligence Replace Judges and Arbitrators?

Updated: Dec 1, 2024

Nevada plans to implement an AI system to expedite the decision-making process for unemployment claims appeals.  The state’s Department of Employment, Training, and Rehabilitation (DETR) has contracted with Google for $1,383,838 to deploy this technology, which will be operational within the next few months.  The AI, powered by Google’s Vertex AI Studio, will analyze data from DETR’s database to issue rulings on appeals in about five minutes, a task that would typically take a state employee around three hours.  This initiative aims to address a significant backlog of over 40,000 appeals caused by pandemic-related spikes in unemployment claims and staffing shortages.

 

               State employees will review the determinations to catch any mistakes, biases or hallucinations (where AI sometimes makes up facts which could impact the outcome).

 

There are potential pros and cons.

 

Arguments for this initiative include:

 

•             Speed: AI can issue rulings in about five minutes, compared to the three hours it takes a state employee

 

•             Efficiency: AI can help address the backlog of over 40,000 appeals due to pandemic-related spikes and staffing shortages

 

•             Accuracy: AI decisions are tailored using data from DETR’s database, potentially leading to more accurate results

 

•             Cost-Effective: The state has invested $1,383,838 in the AI technology, which could possibly save time and resources in the long run

 

               However, there are concerns including:

 

•             Risk of Errors: AI could make mistakes or “hallucinate” facts, impacting the outcome of cases

 

•             Pressure on Employees: Employees might feel pressured to quickly process AI decisions, potentially limiting the effectiveness of human oversight

 

•             Appeal Challenges: Mistakes by AI could undermine claimants’ ability to appeal decisions in civil court, as courts cannot substitute their judgment for the AI’s

 

•             Bias Concerns: There is a risk of inherent biases in AI decisions, despite efforts to address and mitigate them

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