IRS Hits Pause on Tech Modernization Amid AI Advances

The U.S. Internal Revenue Service is pausing its technology modernization to assess the impact of new artificial intelligence technologies. This strategic pause will involve reviewing recent initiatives like the direct free filing system launched last year, and examining workforce realignment opportunities.

The U.S. Internal Revenue Service is temporarily pausing its technology modernization initiatives to reassess its strategies in the face of emerging artificial intelligence technologies, according to a senior IRS technology official.

This strategic pause will involve a thorough review of several technology projects undertaken recently, including the direct free filing system introduced last year during the Biden administration, as the agency seeks to adapt to new advancements.

While the IRS official emphasized there aren't specific plans for staff cuts due to this pause, there are discussions about realigning the workforce to adapt to new operational procedures facilitated by AI technologies.

(With inputs from agencies.)