Ensuring Ethical AI and Data Use in the Digital Evolution of Social Protection

Digital technologies like AI, big data, and mobile platforms are transforming social protection, improving efficiency, targeting, and crisis response. However, without ethical safeguards, they risk exclusion, privacy violations, and systemic bias, emphasizing the need for responsible implementation and human oversight.

Digital technologies are revolutionizing social protection systems worldwide, offering new ways to improve service delivery, outreach, and efficiency. A recent discussion paper by the World Bank, World Food Programme (WFP), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) explores the transformative potential of artificial intelligence (AI), big data, and digital platforms in social assistance programs. These tools can enhance targeting, streamline registration, and secure payments, making social protection more responsive and accessible. However, the report also highlights critical risks such as privacy violations, digital exclusion, cybersecurity threats, and algorithmic bias. Without ethical safeguards, digitalization can unintentionally harm vulnerable populations instead of helping them. The study stresses that technology should act as a supportive tool rather than a substitute for human-driven social services, requiring policymakers to adopt robust governance frameworks and inclusive digital strategies to maximize benefits while mitigating risks.

Unlocking the Power of Digital Technology in Social Assistance

Technology is redefining how social protection programs operate, offering governments faster, more efficient, and transparent service delivery mechanisms. Digital platforms simplify the registration process, reducing the administrative burden on applicants and government staff. AI-driven data analysis improves targeting accuracy, ensuring that social benefits reach the most vulnerable individuals. Mobile apps, SMS alerts, and social media campaigns enhance communication between government agencies and beneficiaries. Automated payment systems such as mobile money and direct bank transfers improve transparency while reducing fraud.

The use of digital tools became particularly evident during the COVID-19 pandemic, when several countries turned to AI and big data for emergency social assistance. Togo’s Novissi program used call-data records to identify affected individuals, while Chile’s Emergency Basic Fact Sheet (FIBE), integrated with the National Social Registry, accelerated post-disaster relief efforts. These examples demonstrate how digital technologies can enhance social protection programs' adaptability to crises, ensuring that assistance reaches those in need quickly and efficiently.

The Hidden Pitfalls of Digital-First Social Protection

While digitalization offers many advantages, it also introduces significant risks. One major concern is governance and institutional coordination. Many government agencies work in silos, leading to inefficiencies in data integration and information-sharing. Countries such as Mali have tackled this by creating a National Steering Committee to coordinate across ministries and establish a unified social registry.

Privacy and data security are also pressing issues. Social protection programs collect sensitive personal information, including socioeconomic and biometric data. Without robust data governance frameworks, beneficiaries face heightened risks of data breaches, identity theft, and unauthorized surveillance. In Chile, the Ministry of Social Development was granted legal access to tax revenue data to verify beneficiary eligibility, demonstrating how legal safeguards can enhance privacy protection while improving service delivery.

Technical challenges further complicate the digitalization of social protection. Many countries lack standardized data dictionaries and harmonized IT architectures, making interoperability between government systems difficult. For example, Moldova’s Social Assistance Automated Information System (SAAIS) encountered challenges in establishing service agreements for data sharing, illustrating the need for clear regulatory frameworks and institutional collaboration.

Bridging the Digital Divide and Ethical AI Challenges

One of the biggest risks of digitalization in social protection is systemic exclusion due to the digital divide. Millions of people, especially in rural and underserved areas, lack internet access or digital literacy, making them invisible in digital-first social protection systems. In Bhutan, high bandwidth costs restrict internet access, while in the Democratic Republic of Congo, limited mobile network coverage hindered outreach during emergency relief programs. If governments rely solely on digital platforms for benefit enrollment and delivery, vulnerable populations could be left behind.

Another critical issue is bias in AI-driven decision-making. AI algorithms trained on incomplete or biased data can reinforce discrimination against marginalized groups. In Togo’s Novissi program, AI models were audited to ensure fairness, but such oversight is not always standard practice in other digital social protection initiatives. Without strong ethical guidelines and regular AI audits, there is a risk of algorithmic discrimination against minorities, low-income groups, and individuals without digital footprints.

Cybersecurity threats also pose a growing risk, with hackers increasingly targeting social protection databases. If beneficiary data is compromised, it can lead to fraud, financial exploitation, and identity theft. Governments must invest in robust cybersecurity measures, including data encryption, multi-layered firewall protections, and secure digital authentication methods.

Balancing Innovation with Human Oversight

To safeguard the integrity of digital social protection, the report recommends a strategic blend of technological advancements and human oversight. Institutional coordination must be strengthened, as seen in Pakistan’s Sindh Social Protection Authority, which ensures better interagency collaboration for effective service delivery. Governments must update legal frameworks to protect privacy, ensure ethical AI use, and regulate data-sharing. In Senegal, the National Unique Registry (RNU) mandates explicit consent for data usage, setting an example for responsible data governance.

Expanding digital infrastructure is also essential—governments must invest in affordable internet access, mobile networks, and offline digital solutions to reach underserved communities. Bhutan’s Maternal and Child Health program developed an offline digital registration system, ensuring accessibility in low-connectivity regions.

Human resources remain vital in social protection. Digital solutions should enhance, not replace human service delivery. Many individuals still lack digital literacy, requiring physical service centers and human-assisted enrollment. Brazil’s CRAS centers offer face-to-face support for social protection applicants, ensuring that people can access assistance regardless of their technological skills.

The Future of Social Protection: A Responsible Digital Transformation

Technology can revolutionize social protection, but only if implemented responsibly and ethically. Policymakers must prioritize digital inclusion, prevent AI bias, and uphold data privacy protections. AI and big data should be viewed as tools that enhance decision-making, not as substitutes for human expertise.

Global efforts to regulate AI, such as the US Executive Order on AI governance and the European Union’s AI Act, set important precedents for ensuring transparency, fairness, and accountability in digital services. Social protection systems must adopt similar ethical safeguards to balance technological innovation with human rights protections.

The future of social protection depends on a thoughtful integration of digital tools and human oversight. Governments must ensure that technology-driven social assistance programs leave no one behind, especially those without digital access or literacy. By embracing innovation while safeguarding ethical principles, countries can create equitable, resilient, and future-ready social protection systems that truly serve the people they are designed to support.