IRS Deploys AI Technology to Handle Taxpayer Services After Major Staff Cuts

IRS Deploys AI Technology to Handle Taxpayer Services After Major Staff Cuts

The Internal Revenue Service is turning to artificial intelligence to fill gaps created by significant workforce reductions. After cutting at least 25% of its staff earlier this year, the agency is now implementing Salesforce's Agentforce technology across three key divisions to help manage taxpayer services.

The AI agents will be deployed in the Office of Chief Counsel, Taxpayer Advocate Services, and the Office of Appeals. Paul Tatum, Salesforce's executive vice president of global public sector solutions, emphasized that these systems come with extensive safety measures and cannot make final decisions or distribute funds.

Key Changes at the IRS

Workforce Reduction Details:

• 12,000 employees have left since Trump's second term began
• 7,000 were fired during probation periods
• 5,000 additional departures occurred within the first three months
• The agency started with approximately 100,000 employees

AI Implementation Goals:

• Process customer requests more efficiently
• Support overworked remaining staff
• Modernize decades-old agency systems
• Maintain human oversight for all critical decisions

What This Means for Taxpayers

The move represents a significant shift in how the IRS operates. Rob Fitzpatrick, senior counsel in the IRS Office of Chief Counsel, called the transition to AI "inevitable and competitive," noting that agencies must adapt or risk falling behind.

The agency also disbanded its Office of Civil Rights and Compliance, reassigning remaining staff to other departments. This contrasts sharply with the Biden administration's approach, which expanded the IRS workforce by about 20,000 employees to boost tax collection.

Whether these AI systems will improve taxpayer experience remains to be seen, but the IRS is betting on technology to maintain service levels despite reduced staffing.

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