Daniel Werfel, former Commissioner of the US Internal Revenue Service, warned that artificial intelligence introduces "unique risks" to sensitive government systems during a recent Bloomberg Radio interview. Speaking as the UK's tax authority, HMRC, undertakes a major digital transformation, Werfel highlighted challenges including data protection, security, and the difficulty of modernizing legacy infrastructure.
Werfel, now with consultancy Public Digital which advises HMRC, discussed the agency's plan to shift most customer interactions online by 2030 while updating outdated systems and exploring AI integration. He emphasized that AI's ability to process vast amounts of data can improve efficiency but also creates unprecedented vulnerabilities.
"The same capabilities that make AI powerful also make it a potential threat," Werfel said. He stressed the need for robust safeguards to protect taxpayer information and ensure system integrity.
The warning comes as governments worldwide accelerate adoption of AI tools, raising concerns about privacy, bias, and cybersecurity. Werfel's experience leading the IRS during its own digital modernization efforts lends weight to his cautionary stance.