AI Consultant to Overhaul Permanent Fund Dividend Application System
Photo Credit: Thapana Onphalai | Istock
With the hope of eliminating a backlog and shortening application review times, the Alaska Department of Revenue (DOR) is partnering with New York-based Saige Consulting to leverage AI technology to overhaul the Permanent Fund Dividend (PFD) application process.
Processing PFDs
Through a competitive process, DOR selected Saige as its strategic business and technology partner to innovate and develop a cloud-native application for the Dividend Application Information System. The enhanced system will streamline and directly serve more than 630,000 eligible Alaska residents as they apply for and receive PFD payments.
The transformation, which will leverage technologies including AI, is aimed at enhancing the effectiveness of the current Dividend Application Information System platform and provide a seamless experience to applicants. DOR hopes to get rid of outdated technology, manual processes, and limited troubleshooting capabilities inherent in the existing system. The overhaul will introduce improvements such as process automation, improved data management, user experience modernization (e.g., streamlining the mail-in application process), enhanced fraud prevention measures, optimized correspondence with residents, and significantly shortened application review times.
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January 2025
Saige has developed a proprietary framework called CivicBridge, which enables scaled application processing by incorporating technology such as AI. It will be used to overhaul DOR’s Permanent Fund Dividend Division (PFDD) to streamline operations and reduce manual workloads for PFDD employees, ensuring accurate and timely application processing. If all goes as planned, applicants will experience a faster process while the division sees a reduction in administrative burden and a decrease in application backlogs.
“At DOR, we are committed to providing the highest level of service to our residents, especially for our PFD program that holds a special place in the hearts of all Alaskans,” saysDOR Deputy Commissioner Fadil Limani. “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. Our team has worked tirelessly over the past year to advance Governor [Mike] 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. We have received tremendous support from the governor’s office and the legislature, and we are eager to see this project come to life.”
Established in 1976, the Alaska Permanent Fund invests natural resource revenues, and the earnings have been shared with eligible Alaska residents as annual dividends since 1982. The application system has evolved with technology, currently driven by a web-based platform called myPFD.
During an initial assessment of myPFD and the Dividend Application Information System platform, projections indicated that with CivicBridge:
- The new Dividend Application Information System implementation will generate significant value and cost savings in the millions of dollars to the State of Alaska through efficiency and accuracy.
- Alaska residents will save more than 7 million minutes or 116,000 hours annually in application queries and follow-ups.
- The PFDD team’s ability to clear the current application backlog will be enhanced.
“It is an honor to collaborate with the State of Alaska on this historic initiative, which will bring significant benefits to both Alaska residents and the Department of Revenue,” says Charles Hu, senior partner at Saige Consulting. “Through our partnership, we are committed to enhancing the services provided by the Department of Revenue by optimizing resident applications through a modern, AI-enabled foundation that will support digital transformation efforts for many years to come.”
Implementation is planned throughout 2025, with the goal of a fully operational system by early 2026.
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