ProjektAskALICE: The Artificial Intelligence Chatbot for Assistance Programs (Bridging the Gap for ALICE)

ALICE (Asset Limited, Income Constrained, Employed) is a novel concept that redefines and elucidates the struggles of households earning above the Federal Poverty Level (FPL) but insufficient to afford a basic lifestyle as outlined in the ALICE Household Survival Budget. United Way coined the term ALICE, which has since gained widespread acceptance, including recognition by the U.S. Department of Labor. The ALICE population constitutes a significant segment of the workforce nationwide, as demonstrated by statistics from United Way and the Bureau of Labor Statistics (BLS) (United For ALICE, 2024) . Despite being employed, these households—approximately 29% of U.S. households, or 37.9 million—struggle to afford basic necessities (United For ALICE, 2024) [1] . ALICE families earn household incomes above the FPL, as established by the Department of Health and Human Services, but below the threshold of the Household Survivable Income (Hoopes & Treglia, 2019) [2] . Furthermore, BLS data indicates that the cost of living has steadily risen, with a 3.4 percent increase in the Consumer Price Index for All Urban Consumers (CPI) over the 12 months ending April 2024 (U.S. Bureau of Labor Statistics, 2024) [3] . For context, the CPI percent change in 2018 and 2019 was 1.6 and 2.5, respectively (U.S. Bureau of Labor Statistics, 2019) [4] . Additionally, the GDP Price Deflator, which measures changes in the prices of domestically produced goods and services, rose by 3.1 percent year-over-year, exacerbating the financial strain on ALICE households (U.S. Bureau of Economic Analysis, 2024) [5] Rising inflation, coupled with the ramifications of the COVID-19 pandemic, has further compounded the financial difficulties faced by the ALICE population. To clearly display this struggle, United For ALICE, the research subsidiary of the United Way nonprofit organization, has made advances through their ALICE population specific annual reports, updates, and studies through the use of field-research and statistics from government agencies and programs. A recent publication “ALICE in the Crosscurrents”, is an ALICE report from May, 2024 that updates the public about the ALICE struggles and hardships with factors such as living expenses, stagnant wage-growth, and most importantly – public assistance. One of the main obstacles faced by ALICE households is their ineligibility for public assistance programs due to income caps and inadequate access. (United For ALICE, 2024) [1]. Numerous public and non-profit assistance programs such as Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) all have fixed criteria solely upon the grounds of income levels, rendering much of the ALICE population ineligible for these crucial support services and leaving them without access to resources that could help stabilize their situation (Cancian, 2014) [6]. This research study aims to quantify the impact of ALICE-specific measures implemented by various nonprofit institutions, such as United Way, Feeding America, and the Salvation Army, through metrics like the number of households benefited and the food security measure "FSRASCH." For instance, United Way, the third-largest nonprofit organization in the United States, is addressing financial stability, educational access, and health initiatives. However, the true extent of their impact is complex, as the number of ALICE households increases due to inflation, stagnant FPL growth, and other macroeconomic factors. This study uses data from IPUMS CPS, the U.S. Bureau of Labor Statistics, United Way ALICE reports, Feeding America annual reports, and Salvation Army annual reports, analyzed through Microsoft Excel's capabilities, including PivotTable. The study concludes that approximately 26.5 million ALICE households remain unserved and that FSRASCH levels have not improved accordingly. Although this analysis focuses on the efforts of three nonprofit organizations, it underscores the need for further action to bridge the gap in assistance. Even as these nonprofit organizations strive to support the ALICE population, there is room for improvement. One potential solution, proposed as an extension of this research, is the implementation of an AI chatbot. This chatbot would bridge the gap in access by providing a centralized, easily accessible platform to inquire about eligibility for public and nonprofit assistance programs. Utilizing Natural Language Processing (NLP) capabilities, the chatbot would communicate conversationally, offering a simple yet efficient user experience. Similar to ChatGPT, the chatbot would respond to user queries regarding assistance programs and search its repository of program criteria data to determine eligibility. It would request relevant information, such as household income and size, and respond with specific programs for which the user qualifies, including SNAP and TANF. This research study, along with the proposed AI chatbot extension, has the potential to become a valuable tool with far-reaching implications for financial inclusion and economic prosperity for the underserved ALICE population.

My expertise lies in using advanced technology, particularly AI and Natural Language Processing (NLP), to address the challenges faced by ALICE households. I have conducted thorough research and data analysis, drawing from reputable sources such as United Way, Feeding America, and government agencies like the U.S. Bureau of Labor Statistics. This has equipped me to understand the complexities of economic struggles and barriers encountered by ALICE families. Additionally, I possess a solid foundation in business fundamentals and macroeconomic and microeconomic principles, which I apply to develop innovative solutions that enhance financial inclusion and economic stability for underserved populations. Through direct involvement and communication with organizations like the North Texas Food Bank as a Youth Council Member and United Way, the third-largest nonprofit institution in the US, I've gained valuable insights into addressing socioeconomic challenges. Collaborating on my research paper with Dr. Ashley Anglin, Director of Research and Strategic Analysis at United For ALICE, United Way's research subsidiary, has further enriched my understanding of ALICE households' needs and the efficacy of nonprofit interventions. This experience has equipped me to integrate advanced technology, such as AI and NLP, to develop solutions that enhance accessibility to vital resources for underserved communities.