IRS Lacks AI Talent and Strategy, GAO Warns
The Internal Revenue Service has no workforce plan to address critical gaps in artificial intelligence skills, according to a Government Accountability Office report released in March. The shortfall threatens the agency's ability to execute AI initiatives.
Staff reductions in 2025 worsened the problem. The IRS cut 63 employees from its Research, Applied Analytics, and Statistics unit alone, with other divisions also losing workers involved in AI projects.
The GAO found three core problems: IRS officials have not identified what AI skills the agency needs, they have not developed a plan to fill those gaps, and they maintain an incomplete inventory of AI applications in use across the organization.
The timing creates real risk. The agency intends to pursue additional AI initiatives while simultaneously reducing headcount and lacking a strategy to staff those efforts. "The recent staff reductions, the intent to pursue additional AI initiatives, and the absence of a plan to address AI skills gaps increase the risk that IRS AI efforts will not succeed," the GAO said.
The IRS agreed with all eight recommendations in the report. The agency must:
- Identify skills gaps and develop an AI workforce plan
- Implement a quality assurance process for AI inventory entries
- Clarify internal communications to ensure all AI use cases are included in the inventory
- Require reporting on whether use cases align with strategic goals
The findings reflect a broader challenge for government agencies managing AI adoption. For executives overseeing strategy and implementation, the IRS case illustrates how workforce planning must precede technology deployment. See more on AI for Executives & Strategy and AI for Government.
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