Analysis of Application of Artificial Intelligence in Social Welfare Administration and Its Policy Implications

Abstract

Social security is one of the fields where artificial intelligence (AI) technology is being actively applied. Chapter 2 of this report examines the current trends in AI development and proposes ethical principles for its application. Chapter 3 reviews case studies of AI implementation in institutions both in Korea and abroad. In the Korean context, 36 projects in social security area employing AI technology were identified. Similarly, as examined in Section 3.2, case studies from other countries demonstrate that relatively basic AI technologies, such as chatbots are widely utilized. Chapter 4 analyzes the regulatory trends concerning AI technology in the social security sector, both domestically and internationally. It was found that Korea lacks adequate regulations in this area yet. Internationally, two key regulatory frameworks were analyzed: the European Union’s Artificial Intelligence Act and Executive Order 14110 issued by the Biden administration in the United States. Both regulations regard the social security domain as a critical target for regulation and present concrete measures for technological advancement and regulatory oversight. Finally, the report identifies ten domains in which AI technologies are applied within the social security sector, and classifies the associated benefits and risks into seven categories each. The report concludes by offering eight policy recommendations to support and regulate AI applications in the field of social security.