

Artificial Intelligence and State Tax Agencies
7 snips Jul 4, 2025
Emily Hollingsworth, a Tax Notes reporter, and Ryan Minnick, COO at the Federation of Tax Administrators, delve into the growing role of artificial intelligence in state tax agencies. They discuss California's innovative AI initiatives aimed at enhancing taxpayer support and improving operational efficiency. The conversation highlights challenges of balancing transparency with data security, the importance of training staff, and insights from a survey on AI adoption for fraud detection. Their insights reveal how state agencies are navigating this technological transformation.
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Careful AI Adoption in State Tax
- State tax agencies are carefully exploring artificial intelligence to improve service while protecting taxpayer data.
- California's pilot of generative AI aims to reduce customer wait times and lessen agent workloads during peak periods.
FTA's Structured AI Education
- The FTA formed an AI working group to educate states about generative AI, including its terminology, opportunities, and risks.
- The group aims to equip tax agencies with knowledge to make informed decisions about AI technologies.
AI Realism and Workforce Training
- Participating states gain valuable insights about AI applications and challenges from their peers.
- The hype has settled; AI tools free knowledge workers to be more effective, requiring workforce upskilling.