Redefining welfare deservingness: the impact of AI and algorithmic systems on the social investment state

This chapter explores the consequences of datafication, automated decision-making, and artificial intelligence (AI) for the future of the social investment state. It examines how automation may reshape social security provision by promoting individualized, targeted interventions. The central argument is that these technologies inherently favor narrowing welfare support to smaller, more selective units. While AI-driven systems enhance efficiency and scalability, they risk reinforcing existing divisions in social policy by relying on decontextualized data and proxies. This may lead to exclusion rather than address the systemic inequalities social investment aims to combat. Algorithmic systems can filter access to welfare based on rigid criteria, deepening distinctions between “deserving” and “undeserving” citizens. Ultimately, the impact of AI in welfare depends on political choices—whether to uphold universal, rights-based policies or move toward selective, contribution-based models. The chapter supports this analysis with recent examples of algorithmic use in social assistance and activation policies.