Alaska Quietly Advances Sweeping AI-Powered Digital ID System to Centralize Identity, Payments, Citizen Data

Alaska Quietly Advances Sweeping AI-Powered Digital ID System to Centralize Identity, Payments, Citizen Data

Original Article By Frank Bergman

Alaska is moving forward with one of the most expansive digital ID proposals in the United States as the state prepares to roll out a redesigned myAlaska platform to centralize identity, payments, and all citizen data for the general public.

The system would merge AI automation, identity credentials, biometric verification, and digital payments into a single, state-controlled gateway for nearly every government service.

The plan, revealed in a new Request for Information from the Office of Information Technology, goes far beyond modernizing an online login system.

It outlines the foundation of a centralized digital identity infrastructure capable of acting on behalf of citizens, performing tasks automatically, and managing personal data across agencies.

Supporters call it “efficiency.”

Privacy experts call it the quiet construction of a government-mediated digital identity regime.

AI Watches Everything You Do

The RFI describes a system in which “agentic AI” would read documents, complete forms, verify eligibility, submit applications, and initiate tokenized payments, not at the citizen’s direction, but on their behalf once consent is given.

In practice, that means:

   • Government AI acting as a proxy between citizens and state agencies

   • Automated decision-making woven into benefits, licensing, payments, and verification

   • Continuous data access required to learn, predict, and execute tasks

The current myAlaska login — used for filing Permanent Fund Dividend applications, professional licensing, taxes, and state forms — would transform into a single AI-driven identity hub linking hundreds of services under one digital umbrella.

This shift raises obvious concerns:

A system that can speak and act “as you” also becomes capable of tracking, profiling, and predicting you.

Massive Data Concentration With Few Guarantees of Limits

The proposal outlines an architecture that could give the system deep access to:

   • personal data

   • behavioral data

 biometric identifiers

   • documents across legacy databases

   • financial information tied to tokenized payments

While the RFI repeatedly references security frameworks, including NIST standards, audits, adversarial testing, explainability, and human override switches, the policy side of those safeguards is notably vague.

Enforcement mechanisms, retention rules, and data-sharing limits are left undefined.

Once an AI is authorized to manage your identity, it raises the question of how you can meaningfully restrict what it can see, store, or share.

Biometric Verification as a Gateway to Daily Life

The redesign integrates both facial recognition and fingerprint authentication, expanding Alaska’s biometric collection significantly.

Historically, biometric systems have proven difficult to secure, and breaches cannot be undone, as you can’t reset your face or fingerprints.

Combined with a centralized identity platform, this creates a single point of failure with enormous surveillance potential.

Phase Two: Digital Payments, Mobile IDs, and Verifiable Credentials

The long-term roadmap pushes myAlaska into digital finance and credentialing:

   • mobile driver’s licenses (mDLs)

   • hunting/fishing permits

   • professional certifications

   • tokenized prepaid balances

   • W3C Verifiable Credentials and ISO 18013-5 standards

These are the same frameworks forming the basis of national and international digital ID programs, suggesting Alaska’s move is part of a broader shift toward interoperable identity systems across the U.S. and Western nations.

Such systems can, over time, evolve into cross-agency tracking infrastructures where identity verification becomes a prerequisite for nearly all online and offline activity.

The Illusion of Consent in a Mandatory Digital World

Officials frame the project as fully voluntary, claiming users “consent” to AI features.

But critics note that “consent” is no longer genuine once digital identity becomes the default for:

   • financial access

   • healthcare portals

   • licensing

   • public benefits

   • even private online platforms

It then becomes required participation.

People who refuse digital ID systems risk being locked out of essential services, creating a tiered society of:

   • the verified, who can fully participate

   • the unverified, who face growing exclusion

This shift raises not only privacy questions but foundational concerns about freedom of expression, mobility, and association.

A Government AI That Learns Your Behavior

Perhaps the most alarming aspect is the state’s intention to deploy AI that:

   • learns individual behavior patterns

   • predicts user needs

   • continuously interacts with government databases

   • initiates actions without human prompting

Once such systems are embedded, scaling them back is extraordinarily difficult.

Governments rarely relinquish newly acquired digital powers.

The line between service delivery and behavioral monitoring becomes dangerously thin.

Alaska Is Not Alone as Global Digital ID Push Accelerates

From the EU and Australia to Canada and multiple U.S. states, digital ID frameworks are advancing rapidly, often justified by “security,” “efficiency,” or “fraud prevention.”

The cumulative effect is a redefinition of civic life where every interaction, online or offline, begins with identity verification.

Alaska’s initiative is among the most sweeping yet.

If implemented, it will mark another major step toward a world where AI-managed identity interfaces with every aspect of daily life.

And once that model is normalized, opting out becomes nearly impossible.

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