How Federal Agencies Are Using AI and Automation to Save Millions in Taxpayer Dollars

How Federal Agencies Are Using AI and Automation to Save Millions in Taxpayer Dollars

The Bureau of the Fiscal Service has quietly become a leader in government automation, showing how smart technology can transform federal operations. Over four years, the agency deployed 104 automated bots that saved taxpayers $13.6 million and freed up 186,000 employee hours for more strategic work.

Major Cost-Saving Results

The Fiscal Service's automation success centers on robotic process automation (RPA), which handles repetitive tasks that once required human intervention. Acting Chief Customer Officer Caitlin Gehring explains that their approach focuses on containing and securing automation to prevent system-wide problems.

Key achievements include:

• 104 automated bots deployed since 2020
• 186,000 employee hours saved through automation
• $13.6 million in cost savings for taxpayers
• Reduced employee burnout and errors in financial systems

Future AI Applications in Government

The agency is expanding beyond basic automation into artificial intelligence. Chief Data Officer Justin Marsico outlined several pilot projects:

Fraud Detection: The Do Not Pay service, which screens billions in federal payments, will integrate AI to automatically detect improper payments instead of relying on manual processes.

Customer Service Enhancement: Call center data analysis identifies user frustration patterns like "mouse thrashes" and "rage clicks" to improve service delivery.

Smart Search Features: The USAspending.gov site will allow users to ask questions in plain language rather than navigating complex filters.

The Foundation: Quality Data

Marsico emphasizes that successful automation requires reliable data. "We want to make sure that we are giving back information that's actually accurate and that the users can believe in," he said. The agency has implemented strict data validation measures, especially for payment and grant distributions.

The Fiscal Service's Administrative Resource Center, which provides financial management and HR services to other agencies, has seen the biggest efficiency gains from automation.

Consider how automation might streamline processes in your own organization—the federal government's success shows the potential for significant time and cost savings.

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