Nevada’s employment agency plans to begin using a Google-run artificial intelligence tool to help process unemployment benefits appeals, a move officials say could dramatically speed up decisions, but one that has raised concerns among some state lawmakers.
The Nevada Department of Employment, Training, and Rehabilitation (DETR) has been exploring the technology since the summer of 2024. The project will cost $2.6 million, with roughly $1.1 million already spent.
Agency officials say the AI system will review information from unemployment appeals hearings and generate draft rulings for human referees to review and approve. The department emphasized that the tool will not make final decisions without human oversight.
State officials say the system could significantly reduce the time required to process appeals. While traditional reviews can take anywhere from 10 minutes to several hours, depending on the case, the AI system could generate a decision in about five minutes. A human reviewer would then spend an additional 10 to 30 minutes verifying the result, according to the agency.
The new system comes after DETR faced a massive backlog of unemployment appeals during the COVID-19 pandemic, though officials say those delays have largely subsided.
Still, the initiative has prompted skepticism from several lawmakers.
State Sen. Dina Neal (D–North Las Vegas) raised concerns about whether Nevada residents should be required to give consent before their appeals are processed using AI technology.
State Sen. Skip Daly (D–Sparks), another critic of the state’s use of AI, questioned whether the efficiency gains justify the program if human workers still must review the AI’s findings.
Under the current system, a state referee conducts hearings, reviews evidence and testimony, and issues written decisions within 30 days. The new AI tool will instead analyze hearing transcripts, documents, and relevant Nevada laws before drafting a decision for a referee’s approval.
DETR officials said the system has undergone months of testing using past appeals cases. During early testing, the AI occasionally cited incorrect Nevada laws or failed to review all relevant documents.
The contract with Google requires the system to reach at least a 90 percent accuracy rate, meaning state workers determine the decision is correct nine out of 10 times.
The project includes several security measures. DETR officials stated that the system will store data within the continental United States. The state will retain control over encryption keys and adhere to Nevada’s information security laws.
Nevada already uses AI in some government services, including an AI-powered chatbot at the Department of Motor Vehicles. DETR had also explored using AI for invoicing, but canceled that project after determining it did not meet expected benefits.
State officials say AI oversight currently falls under a 2024 statewide policy governing how agencies may deploy the technology. The policy prohibits biased use of AI and requires personal data to be anonymized.
The Governor’s Technology Office oversees statewide standards, and a group of agency IT officials regularly meets to discuss AI-related projects and concerns.
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