- The IRS embraces AI to reshape its workforce
- A significant 25% staff reduction has been implemented
- Further layoffs are anticipated, as reports suggest
In a bold move reflecting the current tech landscape, the US Internal Revenue Service (IRS) is venturing into the world of artificial intelligence, aiming to transition its workforce amid substantial job cuts.
During recent discussions held by US Treasury Secretary Scott Bessent at a House Appropriations Committee hearing, it was revealed that the IRS has experienced a staggering loss of nearly one-third of its tax auditors since the onset of the second Trump administration. This workforce reduction comes under the initiatives of Elon Musk’s Department of Government Efficiency (DOGE), further compounding the staffing challenges faced by the agency.
Bessent assured stakeholders that the prospect of additional layoffs would not hinder the IRS’s ability to collect taxes, attributing this confidence to the “current AI boom.” However, specific details regarding the implementation of AI remain sparse.
Cutting Deep: The Impact of Workforce Reductions
The repercussions of eliminating personnel are stark, yet Bessent claims that the IRS will retain its tax collection prowess despite the notable layoffs, including a significant 31% cut from its revenue agent pool. “With smarter IT driven by AI advancements, I am optimistic that we can enhance collections. I anticipate that our collection figures will remain robust, as they have been this year,” he expressed.
This 25% workforce reduction raises concerns about potential delays in tax refunds for Americans, yet it appears that such cuts will persist, reshaping the landscape of tax administration.
Moreover, Musk’s DOGE has discontinued various government contracts with prominent firms like IBM, Deloitte, and Gartner as part of their cost-saving strategy.
Source: The Register
