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GAO Finds IRS Staff Cuts Jeopardize AI Program

The watchdog says the downsizing created skills gaps that jeopardize the IRS’s AI plans.

Overview

  • The Government Accountability Office, in a new audit, said last year’s workforce cuts left the IRS without enough people to develop, buy, or oversee artificial intelligence tools.
  • IRS leaders reported losing about 40% of IT staff and roughly 80% of executives, while the procurement office lost about 40% of its workforce.
  • After half the chief technology officer’s AI team departed in 2025, the office paused support for 10 of 11 AI use cases.
  • GAO tallied 126 AI use cases at the IRS by June 2025, with only 49 operational and chatbots handling about 25 million sessions last filing season.
  • The IRS agreed to draft a plan to close AI skills gaps but has not produced one under a hiring freeze, and one official said an audit-selection model may stop as fewer audits also shrink training data.