NC Uses AI to Save $23M for Helene Recovery Loans

North Carolina is directing nearly $23 million in interest-free loans to local governments. This funding supports recovery efforts in Western North Carolina following Hurricane Helene. The state treasurer announced the distribution on Tuesday.

Treasurer Brad Briner stated that artificial intelligence helped cut administrative costs by 90%. This efficiency allowed the full amount of appropriated funds to reach communities. No money was deducted for program management this time.

AI reduces program management costs

State law allows up to 2% of program funds for administrative costs. Briner explained that his office initially feared needing outside help. Instead, they used automation to manage the complex loan agreements.

The technology helps staff track 119 different borrowers and their repayment schedules. It identifies when officials need to contact local governments. This reduces the tedious work of managing spreadsheets daily.

High demand exceeds available funds

Demand for these loans far outstrips the available money. Treasury received more than $100 million in requests for the 2026 round. Only nearly $23 million is being distributed to communities now.

Roughly $80 million in requests remains unfunded according to the treasurer. The loans must be repaid without interest by June 30, 2030. Repaid funds can then be lent to other areas in need.

Broader adoption of government tools

This program is part of a wider shift in state operations. The department previously piloted a tool from OpenAI to analyze public financial data. They established safeguards and policies before rolling out the technology.

Briner said the department now uses AI in multiple divisions. He believes humans plus technology work better together than either alone. This approach aims to improve the speed of government services.