The state released an action plan earlier this month, which outlined both the challenge and a strategy for moving forward. Within it, officials outlined six high-priority projects. One of those, currently in progress, would use AI tools to manage phone calls, aiding in verifying identity, providing claim status updates and enhancing the on-hold messaging — all to improve the customer experience and assist internal operations, according to OED data.
“This entire action plan is designed to improve how we provide services during the next few years, with some short-term, and long-term, initiatives,” Rebeka Gipson-King, OED communications director, said. “So I guess you could call that a stable revamp. Many of these initiatives call for the use of AI or exploring how AI might enhance our existing services.”
Another initiative, already in progress, focuses on workers at WorkSource Oregon centers around the state, where webinars and other training tools are being piloted to improve interactions and engagement with residents, connecting job seekers to employers. An internal AI-enabled chatbot is also in development, allowing agency staff to quickly access information, reducing time spent consulting manuals or other systems.
The action plan was developed following surveys, interviews and holding focus groups with more than 5,000 OED customers and 850 employees.
“Our goal was to identify what is working, where barriers exist, and what improvements will make the greatest difference for the people and businesses we serve,” Andrew R. Stolfi, director of the Oregon Employment Department, said in a statement. “You can draw a direct line between the feedback we received and the actions outlined in this plan.”
The state is quick to point out improvement metrics it is already seeing. From July 2025 through January 2026, the Paid Leave program shortened the average time to decide a claim by 5.8 days, even with a 17.6 percent increase in application volume, according to OED statistics. During this same period, calls coming into the Unemployment Insurance Division were answered 22 minutes quicker than in the same period a year prior.
Workers and employers largely interact with OED using the Frances Online system, a digital platform launched in stages starting in 2022, Seth Gordon, an OED communications officer, said.
Frances is used to administer payroll reporting and support Paid Leave Oregon contributions and unemployment insurance taxes. The Frances project itself, which unfolded in a series of phases through March 2024, was viewed as a technology modernization effort across OED. The initiatives outlined in the action plan, Gordon said, should be thought of as overall improvements to Frances.
“The proposed changes around Frances can be thought of as specific projects within a larger approach to continually improving Frances Online moving forward — not a single update,” he said via email.
Some of the other prioritized projects in the action plan include features like developing a customer-facing tool to show where an OED claim application is in the process, and identifying next steps. Another endeavor will address communications with OED customers, simplifying letters, web content and other materials.
Oregon Enterprise Information Services, state government’s IT services provider, is “currently working on a comprehensive enterprise AI policy that would provide guidance and tools to support agencies achieving their AI ambitions,” Hope Hiebert, EIS communications director, said in an email. However, OED, which has its own IT department, will take the lead on the various projects to improve its customer service operations.
