IRS could use AI to replace workers after mass layoffs

Date:
Fri, 09 May 2025 16:38:41 +0000

Description:
Considerable IRS workforce cuts could be replaced with bots.

FULL STORY ======================================================================The IRS plans to use AI to supplement its workforce The organization has laid off 25% of its staff More cuts are likely to follow, report claim

The US Internal Revenue Service (IRS) plans to use AI to replace workers having made extensive cuts to its workforce.

US Treasury Secretary Scott Bessent discussed the budget proposal in a House Appropriations Committee hearing , with reports confirming the IRS has lost almost a third of its tax auditors since the start of the second Trump administration - with Elon Musks Department of Government Efficiency (DOGE) trimming the workforce through layoffs and deferred resignations.

Bessent argued further proposed reductions and plans to push further layoffs would not affect the agencys tax collection abilities thanks to the current
AI boom - although he didnt explain exactly how the agency will be deploying the tech. Slash and burn

The ramifications of personnel reductions will not result in a loss of capability, despite the majority of those fired being revenue agents, with
31% of the IRSs revenue agent workforce laid off.

"I believe through smarter IT, through this AI boom, that we can use that to enhance collections and I would expect that collections would continue to be very robust as they were this year," Besset said.

The 25% reduction in workforce for the IRS could lead to potential delays in tax refunds for American taxpayers, but it seems the cuts are likely to continue.

Musks DOGE department has also cancelled multiple government contracts in the name of cost-cutting, including with IBM, Deloitte, and Gartner - to name
just a few.

Over half of UK businesses who replaced workers with AI now report
regretting their decision , and theres huge amounts of uncertainty - with 38% of leaders not fully understanding AIs impact in their business, and 25% unsure of which roles are most at risk.

Tech giants including IBM, CrowdStrike, and, most recently Google, have been cutting staff in recent months, with many are planning to replace these jobs with AI.

Via The Register You might also like Take a look at our picks for the best AI tools around Check out our choice for best antivirus software Generative AI isn't biting into wages, replacing workers, and isn't saving time, economists say



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Link to news story: https://www.techradar.com/pro/irs-could-use-ai-to-replace-workers-after-mass-l ayoffs


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