IRS pauses tech modernisation to assess AI impact

The US Internal Revenue Service (IRS) is halting its modernisation efforts to reassess the role of AI in its operations. With potential workforce cuts of up to 25%, this shift signals a fundamental rethink of how AI can drive efficiency in tax collection and customer service.

While the pause will not impact the 2025 tax filing season, it raises critical questions about the future of digital transformation in government agencies. With $80bn in modernisation funding from the Inflation Reduction Act, the IRS’s next steps could set a precedent for AI-driven restructuring at scale.

Read the full article to explore the impli cations for business and government AI adoption.