MW Could AI fix Social Security? Its likely new boss thinks so - but critics have serious doubts

By Alessandra Malito

The agency already uses artificial intelligence, but Trump's nominee for SSA commissioner said more could be done

The presumptive new boss at the Social Security Administration has plans to deploy artificial intelligence to make the agency more efficient. And while experts from both sides of the aisle agree that the SSA's technology could use improvement - it relies on an archaic computer-programming system and has been plagued with a string of website failures as of late - they worry the changes could come at the expense of services that beneficiaries need.

During his Senate confirmation hearing last month, Frank Bisignano, who runs the financial-technology company Fiserv $(FI)$, said he would improve the error rate at the Social Security Administration and "ensure beneficiaries receive their benefits on time." He also intends to use technology to identify fraud and assist workers answering customer questions, all with the help of artificial intelligence.

The Senate Finance Committee advanced Bisignano's nomination as the next Social Security Administration commissioner by a vote of 14-13 on Wednesday. The confirmation still needs to be voted on by the Senate.

AI already has a place at the Social Security Administration, and technology proponents, including those who worked at the SSA, say there's space for improvement. But many experts also say the immediate focus should be on improving customer service for beneficiaries, at a time when the agency is undergoing major changes initiated by the Department of Government Efficiency.

What's more, critics are concerned that AI is not the right direction for certain functions, such as determining eligibility for disability benefits or answering personal questions - especially considering how important the program is for beneficiaries. About 12% of men and 15% of women age 65 and older rely on Social Security for 90% or more of their income, according to the SSA.

"People tend to contact Social Security in really vulnerable points in their lives: when they lost a loved one, when they become disabled and can no longer work," said Nancy Altman, president of advocacy group Social Security Works. "It is really important that there be some human contact with that."

Bisignano comes with decades of fintech experience, and even mentioned during his hearing that he might be the "first commissioner that's actually been a technologist." His experience is heavily focused on processing payments.

Bisignano worked as head of technology and operations at Citigroup (C) during the Sept. 11 attacks, and later ran the mortgage-banking unit at JPMorgan Chase $(JPM)$ in the wake of the 2008 mortgage crisis, where he was known as a Mr. Fix-It. In 2013 he joined First Data, which was later acquired by Fiserv. Bisignano is currently Fiserv's chief executive and chairman until June 30 or when he's confirmed by the Senate, whichever comes first.

Fiserv, which had 2024 revenue of more than $20 billion, processes 250 million payments a day worth $2.5 trillion, Bisignano said during the hearing - much more than the SSA, which paid out more than $1.5 trillion in Social Security retirement, disability, survivor and Supplemental Social Insurance benefits to more than 74 million people in 2024, the agency reported.

'It is really important that there be some human contact.' Nancy Altman, president of Social Security Works

During his hearing with the Senate Finance Committee, Bisignano said that under his leadership, the agency would "meet people where they want to be met," be that on the phone, in person or online. The push to deploy AI wouldn't affect benefits, but it would improve the accuracy rate of administering benefits, such as by reducing overpayments, he said.

Overpayments are when the SSA sends out more money to a beneficiary than it should, and the request for return of those payments can be aggressive. Recently, the SSA reversed a Biden-era change that means beneficiaries must give 100% of their checks until the debt is repaid, compared to the 10% of checks it was prior.

Worker satisfaction - a longtime issue at the agency, even before the SSA was offering workers buyouts and early-retirement opportunities - would also increase, in part because AI could make employees' lives easier, Bisignano said.

"AI doesn't have to be client-facing," he said during the hearing. "AI is just technology. We were using AI before it was called AI."

Meeting Social Security's AI where it is

If Bisignano moves forward with his plans, he wouldn't be the first to bring AI to the agency.

One example is through a program called IMAGEN, which is an AI program that allows SSA employees to go through thousands of pages of disability determination rules to find what is relevant to the beneficiary's situation. It isn't generative AI, which is the kind of technology that can create content, and it has room for updates, said Betsy Beaumon, former chief transformation officer at the Social Security Administration under President Biden. But it is a "proven time-saver," she said.

The Office of Transformation, which used technology to enhance the agency's systems, was one of the departments dissolved when Leland Dudek took over as the SSA's acting commissioner in February.

The SSA recently announced it was using a generative AI program called Hearing Recording and Transcriptions, or HeaRT, to record and create transcripts in hearing offices. The agency will save about $5 million per year by using the software, which will benefit 500,000 customers each year, it said in March.

"HeaRT provides better customer service by supporting all hearing formats - in person, telephone, and video - without relying on recording hardware," the agency said. "This leads to fewer hearing delays or cancellations due to equipment failure or technical issues, resulting in more timely hearings for the public."

Staffers on Beaumon's team also used AI to analyze why people would call the 800-number. They looked at what services were requested, if those questions could be answered on the website and other ways to determine the best ways to handle customer issues.

'AI is just technology. We were using AI before it was called AI.' Frank Bisignano, President Trump's nominee for Social Security Administration commissioner

The agency has used an AI-driven chatbox on the 800-number to answer claimants' simpler, nonpersonal questions, she noted. Beaumon agrees with Bisignano that the agency should meet customers where they are, supporting beneficiaries who want to talk to an agent on the phone or visit with them in person at a local field office - but "the agency absolutely needs to continue to digitize," she said.

During his hearing, Bisignano mentioned multichannel service (also known as "omnichannel" in the industry), which is when customers get consistent service across numerous channels (such as in person, on the phone and online). Think of it as someone coming into a field office to discuss his or her retirement benefits, but having a disability case in the works. Right now, those are two separate systems, but one day, agents may be able to help clients more seamlessly - and artificial intelligence could assist with that. And in an established omnichannel system, agents could pick up the slack for another department having a really busy day because they could easily access the information from another arm of the agency.

SSA was in the process of implementing that type of service when she was at the agency, according to Beaumon. "I hope they continue it," she said.

Bisignano's push to increase the use of AI at the SSA comes amid heightened scrutiny of the Trump administration's approach to Social Security. At his confirmation hearing, Bisignano faced questions about beneficiaries struggling to access benefits and the politicization of the agency. One Democratic senator was also pushing to delay a vote on Bisignano's confirmation to provide time to investigate a whistleblower complaint that he was working with SSA officials before officially assuming the role.

'Meat cleaver' to the current system

At the hearing, Bisignano also faced questions about how he would implement new technology at the agency, given that the SSA primarily uses COBOL, an antiquated computer-programming application, to manage information. "We know how to build around it," Bisignano said of COBOL. Part of the solution would be in peeling back parts of the system and adding modern technology to the forefront.

"Technology is a great enabler," Bisignano said during his hearing. "We do not need to rewrite every system within Social Security. We do not need to spend lots of money with lots of these things. We can do it with basic technology out there."

Having the right staff to successfully implement any technological changes is also key, experts close to the matter said. But critics say the agency has been quickly and blindly reducing its workforce - a move they argue will not help the SSA improve customer service or manage its current technology.

Some technological experts have left the agency, and many other workers are being encouraged to leave "without even any knowledge transfer," Martin O'Malley, former SSA commissioner under President Biden, told MarketWatch. "If you did that in the private sector, the board would fire you."

The consequences of the worker exodus are already showing, according to O'Malley. The wait times to answer the phone are increasing, up from during O'Malley's leadership. "It is now going back up because of the meat cleaver they've taken," he said. "Every customer-service metric is going in the wrong direction. It is going there fast and, ultimately, the whole thing will cascade into a total system collapse."

MW Could AI fix Social Security? Its likely new boss thinks so - but critics have serious doubts

By Alessandra Malito

The agency already uses artificial intelligence, but Trump's nominee for SSA commissioner said more could be done

The presumptive new boss at the Social Security Administration has plans to deploy artificial intelligence to make the agency more efficient. And while experts from both sides of the aisle agree that the SSA's technology could use improvement - it relies on an archaic computer-programming system and has been plagued with a string of website failures as of late - they worry the changes could come at the expense of services that beneficiaries need.

During his Senate confirmation hearing last month, Frank Bisignano, who runs the financial-technology company Fiserv (FI), said he would improve the error rate at the Social Security Administration and "ensure beneficiaries receive their benefits on time." He also intends to use technology to identify fraud and assist workers answering customer questions, all with the help of artificial intelligence.

The Senate Finance Committee advanced Bisignano's nomination as the next Social Security Administration commissioner by a vote of 14-13 on Wednesday. The confirmation still needs to be voted on by the Senate.

AI already has a place at the Social Security Administration, and technology proponents, including those who worked at the SSA, say there's space for improvement. But many experts also say the immediate focus should be on improving customer service for beneficiaries, at a time when the agency is undergoing major changes initiated by the Department of Government Efficiency.

What's more, critics are concerned that AI is not the right direction for certain functions, such as determining eligibility for disability benefits or answering personal questions - especially considering how important the program is for beneficiaries. About 12% of men and 15% of women age 65 and older rely on Social Security for 90% or more of their income, according to the SSA.

"People tend to contact Social Security in really vulnerable points in their lives: when they lost a loved one, when they become disabled and can no longer work," said Nancy Altman, president of advocacy group Social Security Works. "It is really important that there be some human contact with that."

Bisignano comes with decades of fintech experience, and even mentioned during his hearing that he might be the "first commissioner that's actually been a technologist." His experience is heavily focused on processing payments.

Bisignano worked as head of technology and operations at Citigroup (C) during the Sept. 11 attacks, and later ran the mortgage-banking unit at JPMorgan Chase (JPM) in the wake of the 2008 mortgage crisis, where he was known as a Mr. Fix-It. In 2013 he joined First Data, which was later acquired by Fiserv. Bisignano is currently Fiserv's chief executive and chairman until June 30 or when he's confirmed by the Senate, whichever comes first.

Fiserv, which had 2024 revenue of more than $20 billion, processes 250 million payments a day worth $2.5 trillion, Bisignano said during the hearing - much more than the SSA, which paid out more than $1.5 trillion in Social Security retirement, disability, survivor and Supplemental Social Insurance benefits to more than 74 million people in 2024, the agency reported.

'It is really important that there be some human contact.' Nancy Altman, president of Social Security Works

During his hearing with the Senate Finance Committee, Bisignano said that under his leadership, the agency would "meet people where they want to be met," be that on the phone, in person or online. The push to deploy AI wouldn't affect benefits, but it would improve the accuracy rate of administering benefits, such as by reducing overpayments, he said.

Overpayments are when the SSA sends out more money to a beneficiary than it should, and the request for return of those payments can be aggressive. Recently, the SSA reversed a Biden-era change that means beneficiaries must give 100% of their checks until the debt is repaid, compared to the 10% of checks it was prior.

Worker satisfaction - a longtime issue at the agency, even before the SSA was offering workers buyouts and early-retirement opportunities - would also increase, in part because AI could make employees' lives easier, Bisignano said.

"AI doesn't have to be client-facing," he said during the hearing. "AI is just technology. We were using AI before it was called AI."

Meeting Social Security's AI where it is

If Bisignano moves forward with his plans, he wouldn't be the first to bring AI to the agency.

One example is through a program called IMAGEN, which is an AI program that allows SSA employees to go through thousands of pages of disability determination rules to find what is relevant to the beneficiary's situation. It isn't generative AI, which is the kind of technology that can create content, and it has room for updates, said Betsy Beaumon, former chief transformation officer at the Social Security Administration under President Biden. But it is a "proven time-saver," she said.

The Office of Transformation, which used technology to enhance the agency's systems, was one of the departments dissolved when Leland Dudek took over as the SSA's acting commissioner in February.

The SSA recently announced it was using a generative AI program called Hearing Recording and Transcriptions, or HeaRT, to record and create transcripts in hearing offices. The agency will save about $5 million per year by using the software, which will benefit 500,000 customers each year, it said in March.

"HeaRT provides better customer service by supporting all hearing formats - in person, telephone, and video - without relying on recording hardware," the agency said. "This leads to fewer hearing delays or cancellations due to equipment failure or technical issues, resulting in more timely hearings for the public."

Staffers on Beaumon's team also used AI to analyze why people would call the 800-number. They looked at what services were requested, if those questions could be answered on the website and other ways to determine the best ways to handle customer issues.

'AI is just technology. We were using AI before it was called AI.' Frank Bisignano, President Trump's nominee for Social Security Administration commissioner

The agency has used an AI-driven chatbox on the 800-number to answer claimants' simpler, nonpersonal questions, she noted. Beaumon agrees with Bisignano that the agency should meet customers where they are, supporting beneficiaries who want to talk to an agent on the phone or visit with them in person at a local field office - but "the agency absolutely needs to continue to digitize," she said.

During his hearing, Bisignano mentioned multichannel service (also known as "omnichannel" in the industry), which is when customers get consistent service across numerous channels (such as in person, on the phone and online). Think of it as someone coming into a field office to discuss his or her retirement benefits, but having a disability case in the works. Right now, those are two separate systems, but one day, agents may be able to help clients more seamlessly - and artificial intelligence could assist with that. And in an established omnichannel system, agents could pick up the slack for another department having a really busy day because they could easily access the information from another arm of the agency.

SSA was in the process of implementing that type of service when she was at the agency, according to Beaumon. "I hope they continue it," she said.

Bisignano's push to increase the use of AI at the SSA comes amid heightened scrutiny of the Trump administration's approach to Social Security. At his confirmation hearing, Bisignano faced questions about beneficiaries struggling to access benefits and the politicization of the agency. One Democratic senator was also pushing to delay a vote on Bisignano's confirmation to provide time to investigate a whistleblower complaint that he was working with SSA officials before officially assuming the role.

'Meat cleaver' to the current system

At the hearing, Bisignano also faced questions about how he would implement new technology at the agency, given that the SSA primarily uses COBOL, an antiquated computer-programming application, to manage information. "We know how to build around it," Bisignano said of COBOL. Part of the solution would be in peeling back parts of the system and adding modern technology to the forefront.

"Technology is a great enabler," Bisignano said during his hearing. "We do not need to rewrite every system within Social Security. We do not need to spend lots of money with lots of these things. We can do it with basic technology out there."

Having the right staff to successfully implement any technological changes is also key, experts close to the matter said. But critics say the agency has been quickly and blindly reducing its workforce - a move they argue will not help the SSA improve customer service or manage its current technology.

Some technological experts have left the agency, and many other workers are being encouraged to leave "without even any knowledge transfer," Martin O'Malley, former SSA commissioner under President Biden, told MarketWatch. "If you did that in the private sector, the board would fire you."

The consequences of the worker exodus are already showing, according to O'Malley. The wait times to answer the phone are increasing, up from during O'Malley's leadership. "It is now going back up because of the meat cleaver they've taken," he said. "Every customer-service metric is going in the wrong direction. It is going there fast and, ultimately, the whole thing will cascade into a total system collapse."

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April 05, 2025 08:00 ET (12:00 GMT)

MW Could AI fix Social Security? Its likely new -2-

The combined average hold time, which includes calling and connecting times after a customer answers a call back, was just under 20 minutes in March - down from about 30 minutes in January, but up from 11.5 minutes in September, SSA performance data show. More than three-quarters of calls were handled with callback service last month, and the average callback time was 2 hours and 30 minutes, up slightly from 2 hours and 22 minutes the month before.

The SSA has made an effort to move some beneficiaries away from phone services, such as for identity verification, and toward in-person visits that are set up with an appointment or online through their "My Social Security" accounts. But the phone was a secure system, Altman of Social Security Works said. "The internet is where attempts of fraud are highest," she said.

Lately, the Social Security Administration's website has also been showing some problems, and a major technology transition could exacerbate these issues if not done correctly, Altman said. Earlier this week, users complained they could not access their online Social Security accounts - and it's not the first time in recent weeks the site has been down, experts said. Some beneficiaries were getting into their portals to see messages that they were not currently enrolled for benefits.

Improving the technology at the SSA could be a good thing, so long as it is done methodically and at times that won't disrupt customer service, such as outside of business hours. The entire process could also take years, Altman said - not months, like Bisignano had mentioned.

"It is not that they have new insight or understanding - they don't. They have the Silicon Valley idea of 'go fast and break things,'" Altman said. "You don't want to break this."

-Alessandra Malito

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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April 05, 2025 08:00 ET (12:00 GMT)

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