Modernizing Department of Defense Civilian Human Resources

Harnessing AI for Transformative Change

Brandon Crosby, Nathan Thompson, Lisa M. Harrington, Daniel B. Ginsberg

ResearchPublished Jun 24, 2025

The U.S. Department of Defense (DoD) manages the largest civilian workforce in the federal government and has a pivotal opportunity to modernize its civilian personnel operations and supporting technology. Lengthy hiring timelines, intricate benefits administration, and resource-intensive customer service demands call for innovative solutions. Evaluations have underscored the inefficiencies of existing systems and highlighted user frustration and missed opportunities for automation and process enhancement. In this report, the authors present findings on the potential applications of artificial intelligence (AI) to DoD civilian personnel operations, analyze implementation considerations, and outline key enablers for successful integration. The primary audience includes DoD leadership and staff involved in the policy and execution of civilian defense human resource management (DHRM).

Key Findings

AI has the potential to enhance DHRM operations

  • The use of AI can improve multiple aspects of DHRM, including talent acquisition, job classification, workforce analytics, and administrative automation.
  • AI-powered tools could enhance job analysis, position classification, and hiring efficiency.
  • Machine learning algorithms can improve the applicant experience by streamlining job searches and matching candidates to positions.
  • AI-driven résumé screening and candidate assessment tools could expedite hiring while improving fairness and consistency.
  • Predictive analytics can optimize workforce planning by identifying skill gaps and improving retention strategies.

There are challenges and considerations for AI adoption

  • AI hiring tools must comply with federal equal employment laws and mitigate liability for actions that might be taken using improper data sampling.
  • Data privacy and security concerns, particularly for personally identifiable information, require careful management.
  • Agencies should evaluate whether AI is the best approach or whether an alternative would be more effective.

AI implementation requires a framework

  • Scaling AI-driven DHRM initiatives across DoD necessitates enhancing governance structures and cross-functional collaboration.
  • DoD needs policy leadership for AI integration in civilian workforce management, but components should craft flexible, content-specific strategies.

There are several data challenges to the path forward

  • Data quality is a foundational challenge for AI adoption in DHRM.
  • Although AI offers significant opportunities, DoD components lack a comprehensive strategy for integrating AI into civilian workforce management.
  • Significant effort is needed to clean, standardize, and integrate DHRM data before AI solutions can be deployed at scale.

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Crosby, Brandon, Nathan Thompson, Lisa M. Harrington, and Daniel B. Ginsberg, Modernizing Department of Defense Civilian Human Resources: Harnessing AI for Transformative Change. Santa Monica, CA: RAND Corporation, 2025. https://www.rand.org/pubs/research_reports/RRA3462-1.html.
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