California Moving Forward with Generative Artificial Intelligence in State Call Center

What You Need to Know: CDTFA is implementing GenAI technology to enhance customer service for California businesses. The new resource has the potential to speed response times, improve guidance given to taxpayers, and help learn how GenAI can improve performance across state government.

Sacramento — The California Department of Tax and Fee Administration (CDTFA) is deploying cutting-edge technology to enhance customer service as part of Governor Newsom's executive order to harness the power of Generative Artificial Intelligence (GenAI).

CDTFA has selected SymSoft Solutions, LLC to demonstrate how GenAI can enhance effectiveness in the department's Customer Service Center.

"Integrating GenAI into our operations complements the efforts of our teams," said CDTFA Director Trista Gonzalez. "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."

During a pilot project carried out over the last 10 months, GenAI reduced the time it takes to handle an average CDTFA customer inquiry, which can free up team members to perform other revenue-generating work. During peak tax filing periods, an additional 280 team members from throughout the department are temporarily reassigned to provide backup to the call center.

CDTFA's project stems from one of the state's first five GenAI pilots launched last year to examine how the technology can enhance services for all Californians.

The GenAI solution will swiftly search large volumes of CDTFA reference materials and provide possible responses for customer service representatives to use when replying to taxpayer inquiries via calls, live chat, and emails. Agents will review the proposed responses and more quickly reply to the inquiry, reducing wait times and freeing resources for other work.

During the pilot, CDTFA tested two possible GenAI solutions to find the most effective product, ultimately selecting SymSoft Solutions. CDTFA's contract with SymSoft Solutions will last for 12 months.

Lessons learned from CDTFA's use of GenAI in a real-world environment will help lay the groundwork for improvements in call centers throughout the state. Not only does the department anticipate time savings, but the technology could enhance call center training and improve morale by providing better tools for team members.

For more information about the GenAI work happening in California, visit the state's GenAI website.

The California Department of Tax and Fee Administration (CDTFA) administers California's sales and use, fuel, tobacco, alcohol, cannabis taxes, and other taxes and fees that fund specific state programs. CDTFA-administered programs accounted for more than $96.2 billion last fiscal year, supporting essential local services such as transportation, public safety and health, libraries, schools, social services, and natural resource management programs through the distribution of tax dollars going directly to local communities.