This video is a great discussion of literacy. To put that rate into context, 'illiterate' often includes people that can read and write a little bit, but still struggle with some vital or everyday tasks. According to Wikipedia, 20% of US adults have a literacy level at or below level 1 which would be 80 people in this example. This report has a ton of stats and also defines each level of literacy.

Here in Australia they rolled out an automated system to calculate welfare overpayments and issue debts. It didn't quite work of course and hundreds of thousands of the poorest Australian were issued with false debts, some of whom died or committed suicide before they could be repaid. People still keep floating the idea of automation and AI in our welfare systems...