The child benefits scandal in the Netherlands

A highly publicised case from 2021 is the so-called child benefits scandal (“toeslagenaffaire”). For years, the Tax Administration used a fraud-detection algorithm that, based on patterns and indirect personal circumstances, mass-labelled families as high-risk.

What went wrong

The tool, intended to guide experts towards analysis and a more detailed review of a family’s situation, began to be used for decision-making about people’s entitlements. What was meant as support for oversight became, in practice, automated decision-making without expert judgement—resulting in unjustified sanctions and severe social consequences for tens of thousands of families.

Why the Netherlands is considered a reference point today

Because of the systemic changes that followed. They established a rule that an algorithm must not directly determine an individual’s entitlements; at the same time, they published a public register of algorithms used by the public administration, introduced impact assessments, and more.

Could AI be used for such a case today?

Yes—but only very thoughtfully and under strict oversight. A review of practice shows that AI-first systems are best introduced:

The AI Act and all related legislation may (still) not have reached a sufficient level of practicality and digestibility, but it has its purpose. Attention in this area is essential if we want to live well in the long run.

It’s finally here – the Global AI Index 2025 (Tortoise Media & Observer). This is a global ranking of countries based on their levels of investment, innovation, and implementation of artificial intelligence, now in its sixth edition.

Key findings at a glance:

And where does Slovenia stand?

Showing similar symptoms to other EU countries—a gap between theory and practice—it ranks 39th globally and 19th among European countries.

The Global AI Index 2024 and Global AI Index 2025 show that Slovenia is making progress, but currently at a slower pace than leading European nations.

The Greek National Documentation Centre (EKT) analyzed the 20 most frequently used services on the gov.gr portal, which together handle approximately 14 million requests annually. The results demonstrate the extraordinary impact of digitalizing public services:

The gov.gr platform consolidates hundreds of public services in one place, utilizing AI for:

Results from the Greek National Documentation Centre (EKT) show the exceptional effects of digitalizing public services. They analyzed the 20 most frequently used services on the gov.gr portal, which together handle approximately 14 million requests annually.

Savings and Efficiency

Environmental Impact

User Acceptance

Greatest Individual Impacts

The highest benefit per individual execution is found in:

Why do we find this case interesting?

Because it stems from a focus on the user and the organization’s mission – supporting citizens through procedures that ensure order and justice. AI is a tool for simplification, greater transparency, and faster services, rather than a goal in itself.

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