California drivers can now obtain mobile licenses on their iPhones, though they will still need to carry physical licenses. This development follows a September 2023 analysis by the Electronic Privacy Information Center, which revealed that approximately half of AI contracts signed by state agencies are for fraud detection.

In a notable case, the California Employment Development Department (EDD) denied unemployment benefits to at least 600,000 individuals after AI technology from Thomson Reuters incorrectly flagged their claims as fraudulent. Digital IDs could help state agencies verify identities online, potentially reducing the reliance on fraud detection tools like those used by EDD.

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