US Government Agency Slashes Workforce by One-Third While Pushing AI for Efficiency

The Office of Public Management plans to cut staff by one-third while using AI to boost efficiency and support existing jobs. Training will prepare employees for evolving AI-driven roles.

Categorized in: AI News Government
Published on: Jul 22, 2025
US Government Agency Slashes Workforce by One-Third While Pushing AI for Efficiency

US Government Agency Plans AI Integration Amid Major Staff Reductions

The Office of Public Management (OPM) is pursuing the use of artificial intelligence to boost job efficiency as part of a broader effort to downsize government operations. Scott Kupor, the agency’s new director and former venture capitalist, shared insights on this approach during a recent briefing.

Kupor emphasized that AI won’t be used to directly eliminate jobs but to enhance the productivity of existing roles. He described AI as a key technology capable of significantly improving how tasks are performed, potentially creating new job opportunities in the process.

Staff Cuts and AI Efficiency

Despite AI’s role in boosting efficiency, OPM is set to reduce its workforce by about one-third by the end of the year. The agency plans to decrease its staff from 3,110 to roughly 2,000 employees, mainly through voluntary departures. Contractor numbers will also be halved, going from 1,200 to about 600.

Kupor identified specific tasks where AI could make a difference, such as customer service and processing large volumes of public comments. He envisions AI assisting with summarization and information gathering, which could streamline workflows without impacting the core writing functions of the agency.

Preparing for an AI-Driven Future

Under Kupor’s leadership, OPM aims to ready its workforce for an AI-centric environment. This aligns with national priorities to maintain US leadership in AI development. He noted that government jobs and skill requirements will evolve over the next five to ten years, making recruitment and training critical areas of focus.

While discussions about which AI providers to work with are ongoing, Kupor expressed openness to partnerships that serve the agency’s goals. He highlighted the Department of Government Efficiency (DOGE) as a potential collaborator but stressed that OPM will prioritize its own interests when making decisions.

Other federal agencies have already incorporated AI to cut costs and improve operations. For example:

  • The Department of Veterans Affairs uses AI to standardize care.
  • The Department of Justice applies AI to analyze drug market trends.

Experimenting with AI in Government

Kupor wants to foster a mindset open to experimentation with AI in controlled, low-risk settings. He hopes OPM’s efforts will inspire other agencies to explore how AI can increase efficiency while managing risk responsibly.

For government professionals interested in expanding their AI skills, training resources are available. Exploring courses focused on AI applications in office tools, automation, and prompt engineering can provide practical knowledge for adapting to these changes. Visit Complete AI Training to find relevant programs.


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