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PolicyJun 9, 2026

HHS will use AI built on ChatGPT to audit all 50 states for fraud

The U. S. Department of Health and Human Services launched AERO — Audit Enforcement and Risk Oversight — a program that uses AI tools, reportedly built in part with ChatGPT, to scan at least five years of audit records across all 50 states for fraud, waste, and unresolved findings. Officials estimate $100 billion to $200 billion in wasteful or fraudulent spending each year and have put every state governor and treasurer “on notice,” with loss of funding as the penalty for chronic noncompliance.

Why it matters: It’s one of the most consequential government deployments of generative AI yet — a federal agency pointing ChatGPT-class tools at how every state spends billions in public money.

Read the full story at Healthcare Dive
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