The inventory expanded faster than its management controls
The IRS listed 126 active artificial-intelligence use cases in June 2025, up from 10 reported in August 2022. The later inventory is 12.6 times the earlier count—an increase of 116 use cases, or 1,160%.
Yet 77 of the 126 uses, or 61%, were still in development. Sixty-five—51.6%—were either too sensitive for public reporting or research-and-development efforts exempt from public reporting. Those categories can overlap with development status and should not be added together.
| Measure | GAO finding | Calculated share/change |
|---|---|---|
| Active use cases, Aug. 2022 | 10 | Baseline |
| Active use cases, June 2025 | 126 | 12.6× the 2022 count |
| In development | 77 | 61.1% |
| Sensitive or R&D-exempt | 65 | 51.6% |
| Recommendations | 8 | All open on page reviewed Sept. 23 |
The public count was incomplete and often lacked outcome detail
GAO found that more than 25% of inventory entries did not explain how the use case would benefit the agency. It also identified omitted contracted tools that IRS officials said helped build criminal cases.
No single governance entity managed AI investments across the agency, and the IRS lacked a process for determining whether the portfolio advanced agency-wide goals. That combination weakens both public transparency and internal decisions about which systems deserve funding.
Staffing moved in the opposite direction
Officials in the IRS Research, Applied Analytics and Statistics group told GAO they lost 63 employees who had worked full- or part-time on AI. Other units also reported cuts among staff supporting AI, even as officials said the agency planned to use more of the technology.
The 63-person figure covers one group and cannot be subtracted from the 126 use cases; people and applications are different units. It does show why inventory growth alone is a poor measure of operating capacity.
Agency response and limits
GAO made eight recommendations on skills planning, inventory quality, contracted AI, coordination, strategic alignment and performance measures. The IRS agreed with all eight and described planned or started actions. GAO still lists every recommendation as open, with a 180-day response expected in fall 2026.
This newsroom recalculated growth and shares from GAO’s counts. The public report does not disclose sensitive systems, independently test model accuracy or establish that an omitted inventory entry harmed a taxpayer. It documents management and disclosure gaps, not a finding that every AI use is unsafe.