In a new RAND Corporation report, researchers say the U.S. Department of Defense (DoD) stands at a pivotal moment to transform its civilian workforce operations through artificial intelligence (AI). The report outlines how integrating AI into defense human resource management (DHRM) could streamline hiring, enhance job classification, improve retention, and automate administrative tasks—but also emphasizes that success hinges on data readiness, legal safeguards, and cross-agency collaboration.
The DoD employs more than 770,000 civilian workers—the largest civilian workforce in the federal government—and the RAND study finds that outdated processes and siloed systems are slowing progress at a time when workforce demands are rising. While AI promises major efficiency gains, the report stresses the importance of tailoring any implementation to the DoD’s unique environment, which includes national security priorities, classified data, and complex personnel systems.
Among the most promising applications of AI in DHRM is position description and classification. RAND researchers say generative AI tools could help HR specialists and hiring managers quickly draft job descriptions that meet federal classification standards, reducing inconsistencies and freeing staff to focus on strategic tasks. Officials from the Defense Civilian Personnel Advisory Service confirmed ongoing pilots of such tools, including one supported by the Office of Personnel Management that uses AI to guide classification through a chat-based interface.
AI also has the potential to radically improve the applicant experience. The report notes that many job seekers struggle to navigate the rigid and often confusing federal hiring structure. Machine learning algorithms could help personalize job recommendations, guide candidates through eligibility requirements, and match résumés to open positions more accurately—bridging the disconnect between government jargon and private-sector experience.
The report also highlights the value of AI in screening applicants, analyzing résumés for relevant skills and qualifications, and even assessing soft skills using natural language processing. In pilot programs, DoD officials have used AI to flag key qualifications and automate eligibility checks, cutting down manual review time and improving consistency in hiring.
Beyond hiring, the researchers point to AI’s role in retention and workforce planning. By analyzing data from performance reviews, training records, and climate surveys, AI could help identify patterns that lead to attrition and suggest targeted interventions. Tools could also forecast future skill gaps and recommend reskilling opportunities or leadership development plans for high-potential employees.
However, RAND cautions that AI is not a cure-all. The report outlines major barriers to adoption, including fragmented data systems, privacy and legal risks, limited technical expertise, and a lack of unified strategy across DoD components. Interviewees repeatedly emphasized that AI efforts must be grounded in strong governance, rigorous risk assessments, and cultural buy-in from HR professionals.
To move forward, RAND recommends DoD invest in interoperable data infrastructure, pilot new tools using structured evaluation frameworks, and build cross-functional teams that include both HR and technical experts. With the right foundation, the report concludes, AI could help modernize the department’s civilian workforce and better align talent with mission needs.
Need Help?
If you’re wondering how AI policies, or any other government’s AI bill or regulation could impact you, don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance while answering your questions and concerns.
