Machine Learning for Coding Retail Product Names to Consumer-Price Categories: A Rule-plus-Bag-of-Words Pipeline with Reliability-Weighted Human-in-the-Loop Labeling

Consumer-price measurement increasingly draws on alternative data sources -- scanner, web-scraped, and transaction/receipt data. A recurring obstacle is that product descriptions in such sources are short, noisy, and abbreviated, with no standard product code, so each item must first be mapped to a consumption classification (e.g., the UN COICOP scheme) before prices can be compared. This paper studies that mapping as a general, reproducible method. The pipeline is: (i) text normalization and tokenization of noisy item names; (ii) a prefix-tree (trie) rule-based pre-classifier driven by per-category key-phrases and stop-phrases; and (iii) a per-category binary confirmation model deciding whether an item belongs to a tentatively assigned category. For labels at scale we use a human-in-the-loop protocol in which annotators give a binary valid/reject judgment, aggregated by a dynamically updated reliability weight; the model joins the same rule, enabling continual fine-tuning. Our empirical finding is deflationary: in a controlled, leakage-free study (one category, real positives vs. hard negatives, five seeds), bag-of-words models essentially saturate the task (F1 about 0.99) -- a linear classifier matches a multilayer perceptron, explicit word-order (n-gram) features add nothing, and about 67 labeled examples already suffice. A Monte-Carlo study of the labeling protocol shows the reliability-weighted vote barely beats plain majority (its additive weights saturate) while Dawid-Skene recovers labels markedly better. We also discuss price-level quality control and design lessons for statistical offices considering transaction data. All figures are illustrative; no confidential data, code, or documentation is reproduced.

AI Appeals Processor: A Deep Learning Approach to Automated Classification of Citizen Appeals in Government Services

Government agencies worldwide face growing volumes of citizen appeals, with electronic submissions increasing significantly over recent years. Traditional manual processing averages 20 minutes per appeal with only 67% classification accuracy, creating significant bottlenecks in public service delivery. This paper presents AI Appeals Processor, a microservice-based system that integrates natural language processing and deep learning techniques for automated classification and routing of citizen appeals. We evaluate multiple approaches -- including Bag-of-Words with SVM, TF-IDF with SVM, fastText, Word2Vec with LSTM, and BERT -- on a representative dataset of 10,000 real citizen appeals across three primary categories (complaints, applications, and proposals) and seven thematic domains. Our experiments demonstrate that a Word2Vec+LSTM architecture achieves 78% classification accuracy while reducing processing time by 54%, offering an optimal balance between accuracy and computational efficiency compared to transformer-based models.