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Domain Atlas / Public benefits & eligibility

Case fileMichigan, USAgiant deployment

Michigan MiDAS

Explore this deployment in the PAN Lab ↗

In the PAN Lab, the readouts of each model organization drawn from this case carry a shaded evidence band whose width follows the least-established class among the modeling inputs the readings rest on.

The least-established input behind the “MiDAS-class automated determination system” model's readings is an assumption, not a measurement. Evidence base: 3 assumed · 2 published baseline.

The least-established input behind the “MiDAS-class review network after the settlements” model's readings is an assumption, not a measurement. Evidence base: 6 assumed · 3 published baseline.

Michigan's MiDAS system auto-adjudicated unemployment-insurance fraud with an extremely high error rate among automated determinations, wrongly accusing tens of thousands of people; litigation and court action forced review and compensation.[4]

What happened

Michigan's Integrated Data Automated System (MiDAS) made unemployment-insurance fraud determinations algorithmically, issuing accusations, penalties, and collections in many cases without human review of the determination. Reporting, the state Attorney General's office, and incident documentation describe an extremely high error rate among the auto-adjudicated fraud findings and tens of thousands of people wrongly accused, with wage garnishments and tax-refund seizures downstream. Litigation (the Zynda and Bauserman cases) and court action ultimately forced review and compensation.

The sociotechnical reading

In system-map terms, MiDAS removed the operator network almost entirely: model output flowed to enforcement records and collections with no correction stage. With the error-to-record pathway wide open and the correction dial near zero, errors were self-sustaining by construction — no model improvement could have compensated for the missing human loop. The eventual controls came from actors outside the deploying agency: courts and litigation, years after deployment. The case is the strongest documented argument for why "who can correct, and how fast" matters more than headline accuracy. The Lab draws this deployment at two documented instants: the no-review mode, and the post-settlement structure in which the court-ordered review and the correction of the record are the live pathways.

The concepts used in this reading are defined in the Field Guide; the governance responses live in the Practice Library. The model organization for this case can be stress-tested in the PAN Lab.

Grounding sources for this case

The same sources that ground this model organization in the PAN library: evaluations, government documents, investigative reporting, and advocacy documentation, each labeled by tier.

Independently catalogued as AI Incident Database Incident #373 ↗

aiincidentdatabaseGroundingInvestigativeSave

AI Incident Database, Incident 373 (MiDAS false fraud claims) https://incidentdatabase.ai/cite/373/

https://incidentdatabase.ai/cite/373/

Grounds: model org: michigan_midas

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The histories here are documented after the harm. Mapping a live deployment's pathways and pressures, before the incident report, is engagement work: intake, diagnosis, prescription, and monitoring, with every limitation stated.

Sources & Evidence

Claims made on this page and what supports them. The full registry lives in Evidence.

EmpiricalMichigan's MiDAS system auto-adjudicated unemployment-insurance fraud with an extremely high error rate among …

Michigan's MiDAS system auto-adjudicated unemployment-insurance fraud with an extremely high error rate among automated determinations, wrongly accusing tens of thousands of people; litigation and court action forced review and compensation.

aiincidentdatabaseGroundingInvestigativeSave

AI Incident Database, Incident 373 (MiDAS false fraud claims) https://incidentdatabase.ai/cite/373/

https://incidentdatabase.ai/cite/373/

Grounds: model org: michigan_midas

EmpiricalFrom 2013 to 2015 MiDAS decided many fraud cases with no human review, issuing 60,000+ determinations and wron…

From 2013 to 2015 MiDAS decided many fraud cases with no human review, issuing 60,000+ determinations and wrongly accusing roughly 40,000 people; the agency stopped purely automated fraud assessment in September 2015, and litigation followed — the Zynda settlement forced reinstatement of human review of fraud determinations (2017), and the Bauserman class action over false fraud accusations settled for $20M (2022).

aiincidentdatabaseGroundingInvestigativeSave

AI Incident Database, Incident 373 (MiDAS false fraud claims) https://incidentdatabase.ai/cite/373/

https://incidentdatabase.ai/cite/373/

Grounds: model org: michigan_midas

EmpiricalIn the documented MiDAS case, a 2016 review of 22,000 fraud determinations found 93% did not involve fraud, an…

In the documented MiDAS case, a 2016 review of 22,000 fraud determinations found 93% did not involve fraud, and from October 2013 to September 2015 determinations erred at about 85% when decided by algorithm alone versus 44% with some human involvement.

aiincidentdatabaseGroundingInvestigativeSave

AI Incident Database, Incident 373 (MiDAS false fraud claims) https://incidentdatabase.ai/cite/373/

https://incidentdatabase.ai/cite/373/

Grounds: model org: michigan_midas