Driving Progress: IRS IT Modernization, AI Innovation, and Business Process Transformation Across Government

October 23, 2024

Presented by Appian

IRS Modernization Progress: Technology Transformation and AI’s Role in Future Success

Jena Whitley, Acting Assistant Inspector General for Audit at the Treasury Inspector General for Tax Administration (TIGTA), shares the IRS’s ongoing modernization efforts and the significant progress being made with the support of supplemental funding from the Inflation Reduction Act (IRA). She discusses advancements in artificial intelligence, automation, and cloud technology, noting that these tools are helping the IRS enhance its data access, quality, and efficiency. Whitley explains that the IRS has been working on modernization for over 20 years, with notable milestones being reached in enterprise case management and customer account data systems. However, the $4.7 billion provided through the IRA has given the IRS a crucial boost, allowing it to accelerate modernization initiatives. Despite this progress, Whitley remains cautious, pointing out that many of the IRS’s systems are outdated and interconnected, making modernization a highly complex and ongoing challenge. She also emphasizes that without the successful completion of advanced technology projects, other key IRS objectives, such as faster issue resolution and smarter enforcement of the tax code, could be at risk.

Key Takeaways:

1. The IRS has made progress in modernization through the IRA’s $4.7 billion in supplemental funding, focusing on AI, automation, and data quality improvements.
   
   
2. While the IRS is advancing, it faces significant hurdles due to outdated and interconnected systems that need upgrades or replacement.
   
   
3. The IRS’s success in areas like faster issue resolution and smarter enforcement hinges on its ability to leverage AI and improve data management effectively.

Driving Process Automation in Defense and Intelligence

Matt Beran, Industry Lead for Global Defense and Intelligence Programs at Appian, shares insights into how federal agencies, especially in defense and intelligence, can enhance their operational efficiency through the strategic application of process automation. He breaks down the process into three critical components: process orchestration, automation, and intelligence. Beran explains how these elements work together to streamline workflows, reduce bottlenecks, and ensure better mission outcomes. He emphasizes that by leveraging automation tools like Robotic Process Automation (RPA), agencies can reduce human workload while improving accuracy and speed in mission-critical tasks. Beran also highlights common challenges faced by agencies, such as the frequent lack of awareness about reusable intellectual property (IP) across departments. This leads to inefficiencies as agencies often create duplicate solutions rather than reusing existing ones. He argues that greater market research and collaboration within federal agencies could unlock untapped potential by allowing them to reuse already developed technologies and solutions. 

Key Takeaways:

1. Beran outlines process orchestration, automation, and intelligence as essential tools for streamlining federal operations and improving efficiency in mission-critical tasks.

2. Automation can be applied to case management tasks like investigations and claims, helping streamline processes and improve overall results.

3. A lack of awareness about existing intellectual property (IP) within the federal government presents challenges. By identifying and reusing IP, agencies can save time, reduce costs, and foster greater collaboration across departments.

NASA's Approach to Innovation in Financial Management

Chidilim (Chi) Okonkwo, Director of the Agency Financial Systems Office at NASA, discusses the transformative potential of emerging technologies, particularly artificial intelligence (AI), within the agency's financial management processes. She highlights a growing awareness among the workforce about how these technologies can enhance efficiency, speed up project delivery, and support complex calculations, such as asset valuations. Chi emphasizes the importance of evaluating AI use cases, suggesting that while AI excels in areas requiring data modeling and fraud detection, not all financial tasks are suitable for AI applications. She shares insights on building successful pilot programs, stressing the need for incremental changes and learning from both successes and failures. By fostering a culture that embraces experimentation, NASA is positioning its financial management community to better integrate emerging technologies into its operations, ensuring that finance remains a pivotal part of all agency projects. Chi concludes by underscoring the necessity for CFOs to have a prominent role in discussions about the future of work, advocating for collaboration across the C-suite to leverage technology effectively.

Key Takeaways:

1. AI is particularly useful for complex financial calculations, fraud detection, and predictive analytics but is less suitable for sensitive budget management.
   
   
2. NASA’s approach involves piloting new technologies in financial processes, analyzing results, and scaling successful solutions.
   
   
3. COs must actively participate in AI and tech discussions within the C-suite to ensure financial management aligns with broader organizational goals and technological innovations.