How a Pennsylvania Agency Leverages AI for Case Management

Enhancing User Experience with AI in Unemployment Benefits

The Department of Labor & Industry recently announced an upgrade to its Unemployment Compensation (UC) virtual assistant, a significant step aimed at improving the user experience for individuals in Pennsylvania who are receiving benefits. This update highlights the growing intersection between government services and artificial intelligence technology, offering a more efficient and user-friendly approach to a complex process.

The UC chat system is designed to assist users during a challenging time when they are out of work and seeking employment. The new features aim to enhance this experience by allowing for a more natural conversation style, providing users with the kind of information they would expect from a human interaction.

"Modernizing the unemployment system means more than just clearing backlogs: it means giving people accessible tools that work," said L&I Secretary Nancy A. Walker. "UC Live Chat is part of that effort - a reliable, responsive assistant that helps claimants get what they need, when they need it."

One of the key improvements in the updated system is its ability to understand and respond to user inquiries in the same language and tone one would use when speaking to a human. The system can also draw from previous messages to create "contextual awareness," which allows it to provide more accurate and relevant responses. If issues arise, the system can seek clarification or connect users with an L&I employee who can address their concerns more effectively. It is also better equipped to handle typos, awkward phrasing, or incomplete questions.

While AI has become increasingly prevalent, there are still challenges associated with its use. For instance, generative AI systems often rely on existing internet data, which may contain errors or inaccuracies. These systems can adapt their behavior to communicate with individual users, potentially leading to different responses for the same query. This raises concerns about the reliability of AI-generated information, especially when it comes to sensitive topics like unemployment benefits.

To address these concerns, the state’s UC chat system does not utilize generative AI. Instead, it employs "proven, mature AI features" developed and approved by highly trained UC staff. This ensures that all responses are accurate and consistent. Additionally, the system does not access or store any personal information related to a person’s claim, which is crucial for maintaining user privacy and trust.

The Department of Labor & Industry developed the upgrades internally in collaboration with the Office of Administration using Google DialogFlow CX, a platform designed to simplify the creation of conversational agents. This approach allows for greater control over the system's functionality and ensures that it meets the specific needs of users.

In 2025 alone, the department has already paid out over $1.1 billion in UC benefits to 691,564 individuals. It has also answered 524,407 helpline calls and provided 9,025 UC Connect appointments. In June, the chat system handled 7,477 live sessions, demonstrating its effectiveness in supporting users through the claims process.

By integrating advanced AI technologies while maintaining strict oversight and control over the system’s responses, the Department of Labor & Industry is setting a benchmark for how government agencies can leverage technology to improve public services. This approach not only enhances user experience but also reinforces the importance of accuracy, reliability, and privacy in digital interactions.