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IRS Staffing Cuts Hinder AI Progress, Audit Reveals

3/26/2026

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Story summary
  • A Government Accountability Office (GAO) audit finds staffing cuts at the Internal Revenue Service (IRS) began under U.S. President Donald Trump, hindering AI use.
  • The IRS lost 40% of procurement staff and suspended most AI projects.
  • AI use cases rose from 10 to 126 since 2022, yet 49 projects operate.
  • The IRS acknowledges challenges and aims to improve AI.
  • Congressional Democrats say the cuts harmed taxpayer services and modernization.