# State Revenue Agencies Establish AI Testing Requirements

State revenue agencies, including Michigan and Vermont, are advancing efforts to implement AI technologies for tax fraud detection, emphasizing the need for clear testing objectives, ongoing validation, and accountability measures. Allan Troup, Senior Director of Public Sector SLED at Tricentis, highlights that agencies must treat AI validation as a continuous process due to evolving models and applications, ensuring audit trails and human oversight remain integral to deployment strategies.

- Agencies should develop comprehensive AI testing frameworks that include repeat validation cycles to maintain system reliability over time
- Procurement professionals can expect increased demand for AI testing services and solutions tailored to public sector revenue operations
- Vendors offering AI validation tools with audit trail capabilities and human-in-the-loop features may find new opportunities with state tax agencies
- This trend signals a growing emphasis on responsible AI adoption in government, requiring procurement strategies that prioritize transparency and accountability

**Jurisdictions:** sled
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** September 23, 2026

### Government Entities
- Michigan Department of the Treasury
- Vermont Agency of Administration

### Vendors
- Tricentis (prime contractor)

### Key Quotes
> Agencies need to account for changes that can affect AI performance after a system is introduced. Models, tax engines and related applications can be updated over time, requiring agencies to repeat testing rather than treating validation as a one-time exercise.
> — Allan Troup, Senior Director of Public Sector SLED at Tricentis

### Sources
- [Tricentis Exec Urges AI Testing Rules for Revenue Agencies](https://www.executivebiz.com/articles/tricentis-ai-testing-rules-revenue) - ExecutiveBiz