California CDTFA deploys generative AI to modernize state call center services

The California Department of Tax and Fee Administration (CDTFA) is taking a major step into the future of government service delivery by integrating Generative Artificial Intelligence (GenAI) into its Customer Service Center. This move is part of Governor Gavin Newsom’s broader initiative to explore how GenAI can improve performance and efficiency across California state government.

A New Era for Taxpayer Assistance

The CDTFA has partnered with SymSoft Solutions, LLC, following a 10-month pilot program aimed at testing the real-world effectiveness of GenAI tools in handling taxpayer inquiries. The results were promising: response times were reduced, and agents were better equipped to deliver accurate, timely guidance to Californians.

"Integrating GenAI into our operations complements the efforts of our teams. Helping agents find the right answer is just one advantage of this new technology. We look forward to the possibilities AI will bring to our call center. AI can help us see the big picture, identifying patterns in our calls to anticipate and address customer needs more quickly."

-CDTFA Director Trista Gonzalez

Key Benefits of the GenAI Integration

The GenAI platform will serve as a powerful backend tool for customer service agents, enabling them to:

• Rapidly search large volumes of CDTFA reference materials
• Receive AI-generated response suggestions for calls, emails, and live chats
• Reduce average inquiry handling times
• Provide faster and more consistent taxpayer support

By speeding up the customer service process, CDTFA staff can reallocate time and resources to other mission-critical areas, particularly during high-volume periods like tax season. At peak times, the department brings in up to 280 additional staff members to support call center operations—resources that could be better utilized with AI-enhanced efficiency.

Real-World Impact and Broader Implications

This project is one of five pilot programs launched last year to explore how GenAI could enhance service delivery for Californians. Lessons learned from CDTFA’s implementation will serve as a blueprint for other state agencies seeking to modernize their operations with AI.

The 12-month contract with SymSoft Solutions will support the ongoing rollout and refinement of the technology. Beyond improving response times, the AI system is expected to assist in employee training, reduce stress for call center agents, and improve morale by making complex tax guidance more accessible.

Supporting a $96 Billion Responsibility

The CDTFA is tasked with administering taxes and fees that fund essential public services across California. In the last fiscal year alone, these programs accounted for more than $96.2 billion, directly supporting transportation, public safety, education, and more. Improving the department’s efficiency through AI has the potential to maximize the impact of every taxpayer interaction.

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