How AI is Reshaping Class Action Settlement Administration

Artificial Intelligence (AI) is no longer just a buzzword—it’s reshaping nearly every industry. From healthcare to financial services, AI is streamlining processes, uncovering insights, and introducing efficiencies once thought impossible. Class action settlement administration is no exception.

For businesses and individuals seeking to maximize recovery, this shift brings both opportunities and challenges. Understanding how AI is changing the landscape is critical—and that’s where MCAG helps guide the way.

The Double-Edged Sword of AI

Like many innovations, AI cuts both ways.

On one hand, administrators are deploying AI tools to make the settlement process faster and more accurate. Claim reviews that used to take days can now be completed in minutes. Algorithms can verify supporting documentation, flag inconsistencies, and even identify patterns of suspicious activity—helping ensure legitimate claims don’t get lost in the shuffle.

But on the other hand, AI has also opened the door to more sophisticated fraud. Organized “fraud farms” can generate thousands of AI-created documents, fake identities, and fraudulent claims that are increasingly difficult to detect. Instead of eliminating complexity, this surge in fraudulent submissions can bog down administrators, delay payments, and reduce available recoveries for honest claimants.

Administrators and Courts Fighting Back

The good news is that administrators are not standing still. They are fighting fire with fire, leveraging AI-driven fraud detection tools and digital forensics to uncover and block fraudulent activity. These systems can scan massive volumes of data in real time, spotting anomalies that human reviewers would miss.

Courts are also stepping in. Recognizing the growing threat of AI-generated fraud, judges are demanding more transparency from administrators and stricter fraud-prevention protocols. Moving forward, administrators may need to formally report how claims are verified and what technology is used to ensure fairness and accuracy.

This push for oversight is reshaping the environment. While it increases protections for class members, it also raises the bar for compliance and documentation. Businesses can expect more detailed questions about their claims, stricter verification, and longer timelines when fraud spikes overwhelm administrators.

What This Means for Class Members

For class members—especially businesses with complex claims—the AI era brings real risks:

• Delays in payment as administrators filter through suspicious submissions.

  
  

• Increased scrutiny of legitimate claims, requiring more complete documentation.

  
  

• Reduced recoveries if fraud consumes administrator resources or alters settlement distribution.

In short, while AI holds the promise of greater efficiency, the growing arms race between fraudsters and administrators can create new hurdles for organizations hoping to secure their fair share.

Where MCAG Adds Value

This is exactly where MCAG steps in.

We monitor these shifts closely and ensure our clients’ claims are not only submitted, but also positioned to withstand the heightened scrutiny of today’s AI-driven environment. That means:

• Accuracy – Our experts prepare and validate claim submissions with precision.

  
  

• Documentation – We make sure supporting materials are clear, thorough, and defensible.

  
  

• Advocacy – We stay ahead of evolving administrator and court requirements, protecting our clients from delays or denials.

In an era where fraud and oversight are increasing, the value of having a trusted partner has never been higher. MCAG gives you the confidence that your claim is in good hands—helping you maximize recovery, minimize risk, and navigate the new realities of class action settlements.

Final Thought

AI is transforming settlement administration in ways that are both exciting and challenging. For class members, the stakes are high. By partnering with MCAG, you can stay ahead of the curve, avoid costly delays, and secure the recoveries you deserve.