The U.S. Department of Health and Human Services expands AI use to monitor healthcare fraud risks. he U.S. Department of Health and Human Services (HHS) announced on Thursday it is expanding its use of artificial intelligence to monitor how states and other recipients of federal health funding audit their programs.
The initiative aims to reduce fraud risks and cut government costs by using AI tools, including ChatGPT, to continuously analyze audit reports submitted by all 50 states, according to Gustav Chiarello, assistant secretary for financial resources.
Chiarello said the system is designed to help identify issues in reports that would otherwise go unreviewed, describing the previous process as ineffective and overlooked.
The effort builds on the administration’s broader use of AI in Medicaid oversight, administrative automation, and fraud detection across federal programs.
Critics, however, warn that AI systems can produce errors and may carry biases, urging caution in government deployment.
The initiative will also cover federal grantees in areas such as research, addiction services, and state Medicaid programs, with potential funding consequences for non-compliance.
- Source: AP