VA Uses Automation, AI to Process Record Benefits Claims

Automated tools and decision-support systems helped the Veterans Benefits Administration process a record number of benefits claims in 2025 and early 2026, Principal Deputy Under Secretary for Benefits Margarita Devlin told the House Committee on Veterans Affairs Wednesday.

Devlin told lawmakers that the VA processed a record 3 million Compensation and Pension (C&P) claims in fiscal year 2025. Building on this, the VBA completed 1,418,000 disability claims in fiscal year 2026 through March 22. The agency reached 1 million completions on Feb. 2, earlier than any prior fiscal year, she added.

AI for Increased Accuracy

AI-assisted tools increased claim accuracy rates to 93.95% — the highest 12-month issue-based accuracy rate in two years, Devlin explained. Additionally, average completion times dropped 42% to 81 days since the beginning of the Trump administration.

The improved production led to “historic reductions” in the rating backlog, Devlin told lawmakers. As of March 18, the backlog fell below 90,000, representing a 66% decrease from Jan. 20, 2025.

The VA also improved delivery of Dependency and Indemnity Compensation (DIC) and Survivors Pension claims, significantly reducing inventories over the previous year, she said. By prioritizing resources, the VA reduced its DIC inventory by 68.1%. Pending claims were cut from 29,299 on Jan. 20, 2025, to 9,349 on March 22, 2026, she said. The agency also reduced the DIC backlog by 83%.

Survivors Pension claims underwent similar improvements with an 80% inventory decrease and a 96% backlog reduction since Jan. 20, 2025. Additionally, Survivors Pension processing improved over the same period, dropping from 173 days to 73 days, she said.

Automated Decision Tools

These service improvements were achieved by results-driven resource strategies and automated decision support tools to reduce administrative actions.

The VA automated many of its initial intake processes, such as flagging eligible claimant files to accelerate development. Automation, improved workflow management systems and expanded digital records access also enable faster decision making and help streamline submitting and tracking claims.

VA is also modernizing its National Work Queue (NWQ), she said. The NWQ allows the VA to shift work requirements across its enterprise to avoid regional surges and improve productivity.

“VA continues to optimize technology and improve claims processing quality. Continued expansion of NWQ functionality will focus on improved capability to route claims more efficiently,” Devlin said. She added that the VA is using targeted corrective actions to systematically analyze outcomes to identify recurring quality issues and root causes.

Automation also helps the VA get medical records more quickly. She noted that if veterans have medical records with a private physician or hospital, they do not have to personally find them. All the veterans must do is sign a release and VA’s automated systems will retrieve the records, she said.

“All of these different things that we do to get federal records, to automate procedures that are administrative in nature, help the claim move through the process faster so that a decision maker can look at that claim and make that decision,” she said.

Processing Claims More Efficiently

Devlin noted that the automated claims system has been in place for years; however, VA has accelerated the number of disabilities claims that can be assisted by making incremental improvements.

“It requires focused effort to create more of the automation,” she said.

When pressed by lawmakers about the possibility of an automated system denying veterans’ claims, Devlin countered that the system only compiles the information for human claims reviewers but does not make any independent decisions.

“Our people are making the decisions. The automation will not make any decisions and will not deny a claim,” she said.

VA is also working with the War Department to get digital claims from service members “so that everything is digital, not just the service treatment records.”