The Kansas Department of Labor has completed a major technological overhaul of its unemployment insurance system, replacing software that had remained largely unchanged since the 1970s with a modern platform enhanced by artificial intelligence tools. The modernization, which took effect at the end of 2024, has reduced benefits processing times by nearly 80% and now allows more than 90% of claims to be filed without direct help from a customer service agent.
Before the update, the state's unemployment system presented significant challenges for both claimants and staff. Customer service agents were forced to manage five separate screens simultaneously while assisting people filing for compensation, and one legacy tool was so outdated that it required typed commands instead of mouse navigation. The entire system also shut down each night for batch processing, meaning residents who lost their jobs and attempted to submit claims in the evening were often blocked from doing so.
Amber Shultz, Kansas secretary of Labor, has led the agency's technological evolution. She noted that the complexity of unemployment insurance made the upgrade particularly valuable. "By design, unemployment insurance is extremely complex, and every claim is like a fingerprint—it's unique," Shultz said. The new system includes internal chatbots that help customer service agents answer complicated questions from claimants and employers in real time while they are on the phone. The AI tool searches internal information, forms, and other resources instantly, allowing agents to resolve issues more efficiently.
To build the new system, the department used AI to scan its extensive archive of documents, removing duplicative or outdated information. The tool also identifies commonly asked questions, which the agency now publishes on its website to help users find answers independently. For claimants who do need assistance, the reduced workload has given staff the capacity to answer every incoming phone call.
The agency is now developing predictive AI tools designed to anticipate high call volumes and recommend temporarily adding more representatives to the call center. Managers also use AI-generated dashboards to monitor and improve performance. In addition, the technology helps flag fraudulent applications and identify software vulnerabilities that could be exploited by hackers.
Shultz emphasized that the rollout has been deliberate rather than rushed. "We're not just chasing the technology," she said. "We really look and evaluate to see if it can improve the experience for claimants and for staff." She does not expect AI to replace state employees, but rather to enable a lean team to accomplish more with its existing workforce.
The transformation has also shifted the agency's broader approach to government technology. "I think the thing that I'm most proud of is that we really changed the mindset of what government technology can be," Shultz said. "We aren't just replacing those old legacy systems anymore. We really are building something that is more agile and data driven. And we as an agency are more willing to embrace any technology because we've seen what it can do for us."