Optimizing predictive accuracy is a different objective from optimizing welfare: when screening/administrative costs dominate at national scale, simpler or alternative targeting methods can beat complex ML models in welfare maximization.
It breaks the default assumption that a better model means a better system. The cost structure of the surrounding pipeline (verification, screening, enrollment friction) can dominate model error, so the correct optimization target is end-to-end welfare, not a model metric like AUC or accuracy.
Any agent or ML system whose output must be acted upon by a human/institutional process should be evaluated against a full cost-inclusive objective; the scoring function should price the downstream verification and action costs, not just prediction quality.
Better prediction does not equal better policy; trade-offs exist between model accuracy, interpretability, privacy, and community legitimacy.
When screening costs dominate at a national scale, simpler or alternative targeting methods can outperform complex ML models in welfare maximization.