Alaska to overhaul ‘outdated’ permanent fund application process with AI tech

Alaska’s Department of Revenue is set to overhaul the “outdated” application system for the state’s Permanent Fund Dividend program next year with new artificial intelligence and enhanced data management capabilities, modernizing the experience for residents.

To complete the PFD program application system upgrade, the state said it selected tech firm Saige Consulting to replace the current MyPFD web-based platform with a cloud-native system. The program, which is administered by the state’s DOR through its Permanent Fund Dividend Division, was established in 1976 and invests natural resource revenues derived from state land. The earnings are then shared annually with eligible Alaska residents as dividends that residents can apply for. The new application system will streamline this process for the more than 630,000 eligible Alaskans who apply for and receive a PFD every year, which this year amounted to $1,702 per eligible resident.   

The system overhaul will improve “a suboptimal dividend application experience due to outdated technology, manual processes, and limited troubleshooting capabilities,” a news release said. It will include improvements including process automation, improved data management, user experience modernization such as streamlining the mail-in application process, enhanced fraud prevention measures, optimized correspondences with residents and shortened application review times.

Charles Hu, a senior partner at Saige Consulting, told KTUU in Anchorage that the new system will save Alaskans “over 7 million minutes or 116,000 hours annually in application queries and follow-ups.” He also said that while the system will utilize process automation, none of the systems are running automatically, and an analyst will still need to ensure that all application information is correct. 

While Alaska’s DOR has started the discovery phase of the upgrade, and initial implementation is planned throughout 2025, the state said its goal is to make the system fully operational for residents by early 2026.

“Our partnership with Saige introduces advanced AI capabilities to our state government functions, accelerating Alaska’s IT modernization and ensuring that all residents benefit from cutting-edge technology and an improved digital experience,” Fadil Limani, deputy commissioner of the Alaska Department of Revenue, said in a news release.

“Our team has worked tirelessly over the past year to advance Governor Dunleavy’s initiative striving to be at the forefront of digital innovation and our commitment to modernize and secure Alaska’s digital landscape, which promises to revolutionize how we process PFD applications — a true game changer for generations of Alaskans,” Limani continued. “We have received tremendous support from the Governor’s office and the Legislature, and we are eager to see this project come to life.”

The announcement follows Alaska’s attempts to expand the use of AI within state government, including the development of several “promising” proofs of concept for AI, mostly centered around citizen engagement, accessibility and employee efficiency, Bill Smith, the state’s chief information officer, said this fall.