The Department of Health and Human Services will deploy generative AI tools, including ChatGPT, to continuously analyze audit reports from states and federally funded grantees in a bid to reduce fraud and tighten oversight of Medicaid and other HHS-backed programs. The initiative, led by Assistant Secretary for Financial Resources Gustav Chiarello, is part of the Trump administration’s broader anti-fraud campaign championed by Vice President JD Vance; the FTC has also touted using AI to flag potential fraud. HHS warned governors and treasurers that chronic noncompliance with audit requirements could jeopardize funding. Supporters say AI can quickly surface patterns in sprawling documents; critics argue the administration’s probes are politically selective and that AI tools risk errors and bias, citing a past data mistake involving a New York Medicaid inquiry. Chiarello said the effort reviews public reports and aims to improve stewardship, and he is encouraging other agencies to adopt similar technology.
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