Proactive people-centred assignment of social benefits in Azerbaijan

In Azerbaijan, a groundbreaking AI-driven system proactively assigns social benefits (pensions, social allowances and other type of benefits), automatically identifying and enrolling eligible citizens without them needing to apply. "Proactive assignment" means the system anticipates needs and initiates support delivery, ensuring timely and equitable access to social services. This innovation eliminates bureaucratic delays, making the social security system more efficient and accessible for all.

Innovation Summary

Innovation Overview

In 2019, the State Social Protection Fund of Azerbaijan (SSPF) introduced a unique AI-driven proactive assignment mechanism for the assignment of social benefits. This self-starting assignment system is a modern approach to delivering a social service that uses big data and technology to identify and reach out to eligible individuals and assign social benefits from a single center to families without them having to visit any institution. Historically, the Azerbaijani populace faced a lengthy procedure for availing social services, necessitating navigation through myriad bureaucratic channels and paperwork.

By addressing this challenge, the new mechanism streamlined the process, enabling eligible citizens to be automatically enrolled and receive their due benefits in time. Citizens are also informed via SMS notification about the assignment of social payment, the amount and where they can obtain their bank cards. By emphasizing user-centricity, openness and robust stakeholder engagement, the SSPF has markedly enhanced the accessibility and reliability of social services for its citizens and has positioned Azerbaijan at the vanguard of innovative governance, offering a paradigm that stands as a beacon for nations globally.

The introduction of the proactive assignment of social services by the SSPF brought about a radical transformation in the social protection domain of Azerbaijan:

In 2019, over 90% of social benefit assignments experienced delays extending from 2-4 months, and in some instances, up to a year from the eligibility date. Fast forward to 2022, the proactive system demonstrated remarkable efficiency: 72% of beneficiaries were assigned on the very day their rights were established, and administrative enhancements ensured that the remaining 28% saw their assignment durations slashed to a mere 15 days;
Over the past period, a total of USD 4.2 billion has been paid to 600 thousand individuals through proactive social payment assignments;
The administrative efficiency of the SSPF witnessed dramatic enhancements:
- Processing time for assignments saw a 60% reduction;
- Human error instances dropped by 75%, signaling an error-free distribution of benefits;
- Operational costs, in comparison to the previous manual system, declined by 40%, showcasing fiscal prudence.
From 2019 to 2023, 15 new types of social payments had been established, and they had been assigned through a design compatible with the proactive mechanism.
- The proactive assignments over the years were as follows: 7% in 2020, 45.6% in 2021, 54.4% in 2022, and 72% in 2023.
- Statistically, 80 thousand individuals achieved 100% proactive assignment for the newly established types of stipends (in 2023) due to the prior adaptation of the legislative requirements for proactive assignment concerning those types of stipends.
Level of satisfaction of citizens in the SSPF’s services increased sharply and amounted to 98%.

Innovation Description

What Makes Your Project Innovative?

SSPF’s proactive assignment system which is an AI-driven initiative that revolutionizes the delivery of social security, seamlessly assigning benefits like pensions and other social benefits directly to eligible individuals without application processes. By leveraging data analytics, this system expedites support, democratizes welfare access, and significantly reduces administrative overhead. It represents a paradigm shift from traditional welfare approaches, enhancing transparency and efficiency in public service delivery. This proactive mechanism broadens support to include essential social safety measures, ensuring no eligible citizen is missed due to access barriers. It serves as a scalable model for future innovations, demonstrating how technology can streamline social welfare systems, making them more equitable and effective.

What is the current status of your innovation?

The proactive assignment system is fully operational and has successfully served over 600,000 beneficiaries since its inception in 2019, with plans for further expansion and refinement.

Innovation Development

Collaborations & Partnerships

Central to this initiative is the integration with the E-gov system, developed by the Innovation and Digital Development Agency of Azerbaijan. This collaboration ensures seamless access to a broad spectrum of governmental data, enabling the precise identification of benefit recipients. Furthermore, the system directly taps into the main database system of the Ministry of Labour and Social Protection of Population of the Republic of Azerbaijan.

Users, Stakeholders & Beneficiaries

The main beneficiaries of this innovative system are the elderly and vulnerable groups, who now enjoy timely and direct access to social benefits without bureaucratic delays. The proactive assignment system has positively impacted over 600,000 Azerbaijani citizens by automating the distribution of social benefits, reflecting an 80% uptake among the target group. It is important to note that government officials have benefited and witnessed a 60% enhancement in administrative efficiency.

Innovation Reflections

Results, Outcomes & Impacts

The new system achieved an 80% uptake with over 600,000 beneficiaries by early 2023, including all pension types and 49 of 51 social allowances and stipends. By 2022, it reduced assignment delays drastically, with 72% of benefits assigned immediately and the rest within 15 days, distributing over USD 4.2 billion and achieving a 94% adequacy rate. Administrative efficiency soared, cutting processing times and operational costs by 60% and 40% respectively, while eliminating 75% of human errors. Digital engagement flourished, with the “e-sosial” web-portal citizen interaction, receiving over 71.8 million interactions. The system expanded to include 15 new payment types by 2022, significantly improving citizen satisfaction.

Challenges and Failures

During the AI-based proactive assignment mechanism's rollout, the SSPF faced challenges including data integration complexities with over 15 state agencies, staff resistance to new processes, training deficiencies, and technical setbacks like server overloads. To overcome these, the SSPF enhanced inter-agency collaboration, launched comprehensive training for all stakeholders, made iterative technical adjustments and implemented change management strategies. These measures streamlined beneficiary identification, improved system functionality, and fostered a culture embracing innovation, setting a solid foundation for the mechanism's success and scalability.

Conditions for Success

The success of the AI-based proactive assignment mechanism hinges on several critical factors: a comprehensive digital infrastructure for seamless data integration and real-time processing, a robust policy framework ensuring compliance and aligning with welfare objectives, visionary leadership to steer digital transformation, adequate resources for development and operation, and engaged stakeholder collaboration for responsiveness and transparency. These elements are fundamental in establishing a system that accurately identifies and enrolls beneficiaries, ensuring the initiative's effectiveness and long-term sustainability.

Replication

The proactive assignment mechanism has shown significant potential beyond Azerbaijan's social security, attracting interest for replication in healthcare, education, and by NGOs and CSOs for aid distribution. Its adaptability and innovative approach promise broader applicability in enhancing social welfare globally. The mechanism's success underscores the importance of digital transformation in public services, suggesting a growing potential for adoption in varied contexts. Future expansion will rely on collaboration and knowledge exchange, emphasizing the mechanism's role in improving public service delivery through technology.

Lessons Learned

Implementing the proactive assignment mechanism involves risks like data privacy concerns, potential digital inequality and resource constraints, necessitating robust cybersecurity, measures to include all population segments and sufficient resource allocation. Success relies on comprehensive digitization, shifting to a proactive approach for timely benefits distribution, and an iterative refinement process based on feedback. These elements are crucial for overcoming challenges and replicating the initiative's benefits widely, ensuring it remains effective and accessible to all beneficiaries.

Anything Else?

This innovation not only streamlines social benefit distribution but also represents a shift towards more empathetic governance, where technology is used to proactively support citizens' welfare. Its implementation underscores the potential of digital solutions to bridge gaps between government services and community needs, setting a precedent for future public service innovations. The proactive assignment mechanism highlights the transformative power of integrating technology with compassionate policy-making, offering a blueprint for other nations and sectors aiming to enhance their social security systems.