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I’d like to think it’s the opposite, the AI systems were actually being fair and allocating payouts to people the manual process wouldn’t have, so it was scrapped for being too expensive.
Give it time though and they’ll sort that out, can’t possibly pay out to people who actually need help. It’s just not how they do things.
Oh yeah, they wouldn't have scrapped it unless it was damaging them somehow (like you say, or possibly by being so transparent they couldn't even muster any plausible deniability), rather than benefits claimants, as intended.