AI For Agencies: Modernization and Taxpayer Service

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Presented by IBM

AI for Agencies: Modernization and Taxpayer Service explores the transformative role of artificial intelligence within federal agencies, with a focus on the IRS's efforts to modernize operations, enhance taxpayer experiences, and optimize workforce management. Hosted by Francis Rose and presented by IBM, the program features in-depth discussions with leaders from the IRS and IBM on AI’s strategic implementation, from use-case-driven approaches to its impact on application modernization and human resource management.

 A Use-Case Driven Approach to AI

Featuring:

• Vanessa Hunt, General Manager, Technology, U.S. Federal Market, IBM

Vanessa Hunt, General Manager of Technology for the U.S. Federal Market at IBM, outlines the importance of a use-case-driven strategy in adopting AI. Rather than adopting an "AI-first" mentality, this approach focuses on addressing specific, tangible challenges within agencies. Hunt explains how IBM has successfully used AI to modernize applications, enhance client experiences, and deploy digital labor. These successes illustrate the value of identifying and solving well-defined problems before scaling AI across an organization. She emphasizes that this strategic method allows agencies like the IRS to achieve measurable improvements, particularly in areas like procurement and HR. For the IRS, this approach is instrumental in its modernization journey, enabling the agency to identify processes that benefit most from AI, ensuring that AI tools are implemented with precision and scalability.

Key Takeaways:

• A focused, use-case-driven approach ensures AI addresses specific challenges rather than broad, undefined goals.
• Agencies like the IRS can prioritize high-impact areas, such as procurement and service delivery, for AI adoption.
• IBM’s successes with application modernization and digital labor showcase how targeted AI strategies drive operational efficiency.

AI and the Taxpayer Experience

Featuring:

• Reza Rashidi, Director for Data Management within the Research, Applied Analytics and Statistics Division, IRS
• Jason Prow, Senior Partner, Data and Tech Transformation, U.S. Federal Market, IBM Consulting

Reza Rashidi, Director for Data Management within the IRS’s Research, Applied Analytics, and Statistics Division, and Jason Prow, Senior Partner for Data and Tech Transformation at IBM Consulting, discuss the pivotal role of AI in reshaping taxpayer services. Rashidi highlights the IRS’s use of AI to enhance interactions with taxpayers, improve compliance monitoring, and optimize operational efficiency. These advancements have been critical in modernizing how the agency serves millions of Americans annually. Prow builds on this by showcasing IBM’s contributions to AI-driven tools that enable natural language interaction and advanced reasoning capabilities. For instance, these tools empower IRS call centers with real-time data analysis to provide personalized support to taxpayers. Both experts emphasize that this collaboration has shifted AI’s focus from mundane tasks to intelligent, decision-making systems that streamline the taxpayer experience.

Key Takeaways:

• AI enhances taxpayer service by providing IRS agents with real-time insights and enabling intuitive communication through natural language processing.
• Compliance efforts are strengthened by AI’s ability to analyze large datasets and uncover patterns of non-compliance.
• IBM’s cutting-edge AI tools facilitate decision-making, improving the IRS’s ability to offer personalized, efficient taxpayer support.

AI and Application Modernization

Featuring: 

• Kaschit Pandya, Chief Technology Officer, IRS
• Fred Collins, Distinguished Engineer, U.S. Federal Market, IBM Consulting

Kaschit Pandya, Chief Technology Officer of the IRS, and Fred Collins, Distinguished Engineer for IBM Consulting, explore the critical role of AI in modernizing legacy systems at the IRS. Pandya explains that AI has been central to the IRS’s operations for decades through machine learning applications but notes that newer technologies like generative AI offer unprecedented opportunities for innovation. For example, the IRS uses AI to convert outdated programming code into business logic and modern languages, dramatically reducing the time required for system upgrades. Collins highlights IBM’s role in this process, sharing how their AI solutions transform years of legacy data and applications into agile, cloud-ready systems. This collaboration allows the IRS to better manage its vast data infrastructure, enhance scalability, and ensure faster service delivery to the public.

Key Takeaways:

• AI supports the IRS in transitioning from outdated legacy systems to agile, modern frameworks, improving scalability and efficiency.
• Generative AI accelerates code transformation, reducing development cycles from days to hours.
• IBM’s AI expertise enables seamless modernization of federal applications, allowing the IRS to focus on delivering higher-value services.

AI and the Future of Human Resources

Featuring: 

• Traci DiMartini, Chief Human Capital Officer, IRS
• Mike Chon, VP and Partner, Talent Transformation, U.S. Federal Market for IBM Consulting

Traci DiMartini, Chief Human Capital Officer at the IRS, and Mike Chon, Vice President and Partner for Talent Transformation at IBM Consulting, discuss the transformative impact of AI on workforce management. DiMartini highlights the IRS’s use of AI tools to streamline HR operations, such as recruitment and internal support. In 2024, AI-driven chatbots enabled the IRS to address 150% more taxpayer questions compared to previous years, showcasing the scalability of AI in service delivery. Chon adds that IBM’s AI solutions, like the "Ask HR" chatbot, provide a 94% resolution rate, revolutionizing how employees interact with HR systems. Both emphasize that AI not only supports operational efficiency but also enhances employee experience, fostering retention and satisfaction. These advancements underline AI's dual role in improving both taxpayer and workforce interactions.

Key Takeaways:

• AI-driven tools like chatbots empower the IRS to scale its services, improving responsiveness to taxpayers and employees.
• Enhanced employee experiences through IBM’s AI solutions boost workforce retention and satisfaction.
• AI streamlines HR processes, enabling faster recruitment, onboarding, and internal support at agencies like the IRS.