Red Hat AI for Intelligent Tax Administration

AI foundations for intelligent tax administration

Rung: data · information · knowledge · judgement

Red Hat · Four Inc. · Carahsoft — Virtual Event · September 17, 2026

What predictive AI, generative AI and LLMs actually do — then how Red Hat turns models, agency knowledge and automation into an operable mission capability, proven in eight labs you run yourself.

Presented by Jon Keam and Brad Scalio.

The ladder as a layered pyramid: 01 Data, 02 Information, 03 Knowledge, 04 Judgement, with the question each layer answers; data informs every layer, the end state is knowing enough to decide, and the rule on the base is to solve a problem someone has

Four different jobs get called “AI”

Rung: information · knowledge · judgement

Treat AI as a toolbox, not a magic employee. Pick the tool by the job you need done.

TermWhat it actually doesAnalogy

Predictive AI — estimate (data → information)

Finds patterns in historical data to score, classify or forecast an outcome.

A weather forecast: “there is a 70% chance,” not a guarantee.

Generative AI / LLM — create (information → knowledge)

Produces new language by predicting useful next tokens from patterns learned during training and context supplied now.

A very well-read drafting assistant — fast, fluent, and still capable of being wrong.

Agentic AI — reason + act (knowledge → action)

Pairs a model with approved tools, state and rules so it can plan steps and call systems.

A junior analyst with a badge and a restricted tool belt — permissions still matter.

Automation — execute (executes judgement)

Runs deterministic, tested steps when a condition or human decision says to act.

A checklist that actually performs the checklist. This is where Ansible belongs.

Predictive AI is not a crystal ball. An LLM is not a database, policy authority or source of truth. An agent is not permission to bypass controls.

The work is seasonal, textual and unforgiving

Rung: data

Demand

Peak load, fixed staff

Idle capacity in August is unjustifiable; exhausted capacity in April is a headline. A year of demand arrives in six weeks — April is 6× the August low.

Systems

Rules locked in legacy code

Rewriting the systems of record is a decade. Wrapping them in intelligent workflows is a quarter.

Data

The answers are in the text

Correspondence, transcripts and case notes are unstructured — exactly what language models are built for.

The constraint that decides everything

The data cannot leave (data — it stays)

FTI handling rules rule out public endpoints. The model comes to the data — on premises, accredited cloud, or air-gapped enclave.

An LLM is the engine — not the whole vehicle

Rung: data · information · knowledge · judgement

LayerWhat it is

Mission app (judgement)

The taxpayer-service UI, case workflow or console that asks for help.

Context / RAG (knowledge)

The approved guidance for this exact question — the open book.

Model / LLM (information)

Learned language patterns — not your live system of record.

Inference (data → information)

The engine — vLLM, the Red Hat AI Inference Server.

Platform (executes judgement)

Identity, scaling, isolation, lifecycle, policy — RHEL and OpenShift AI.

Compute + data (data)

Accelerators and agency data — wherever authorization requires.

Fine-tuning is studying for the test. Retrieval is bringing the notebook. You want both — and neither makes the model a source of truth.

From data to judgement — and who climbs each step

Rung: data · information · knowledge · judgement

Every step up is worth more to the mission. AI moves the work up the ladder — it never takes the top step.

RungWhat it isLooks likeWho climbs to it

Data (data)

What happened, uninterpreted

returns · transcripts · calls · scans

—

Information (information)

Data in context for one case

matched · flagged · routed by intent

Predictive AI — score · match · flag

Knowledge (knowledge)

Information that informs an outcome

guidance · precedent · taxonomies

Generative AI + RAG — read · ground · draft

Judgement (judgement)

A determination someone signs

the decision — and the accountability

People — decide and sign. Stays human.

The backlog lives at the bottom of the ladder. Transcribing, matching, routing and summarizing consume the workforce. Every hour a machine absorbs down there is an hour an examiner spends deciding — the only work that resolves a case.

Judgement is deliberately never automated. The model classifies, grounds and drafts; a named person decides and signs. That is a design rule, not a technical limit — and it is what makes the deployment defensible to counsel and oversight.

Predictive and generative AI answer different questions

Rung: information · knowledge

They fail differently — so they are governed differently.

Predictive AI (data → information)Generative AI (information → knowledge)

learns from

Patterns in structured history — filings, payments, outcomes

Language itself — how guidance, notices and case notes are written

produces

A number: a score, a forecast, a flag

Text: a classification, a draft, a summary, a cited answer

in tax terms

Refund-risk scoring · workload forecasting · anomaly flags

Read correspondence · draft notices · summarize case files · answer from guidance

fails as

A bad number — visible in precision and recall

A plausible sentence — which is why grounding and review are non-negotiable

governed by

Back-testing, thresholds, fairness metrics

Retrieval with citations, human sign-off, drift monitoring — Labs 04 · 06

In the interactive deck this slide is a single graphic: predictive and generative overlap where a score picks the case and a draft explains it, and a person decides.

Where AI actually lands in the filing lifecycle

Rung: judgement

AI lands on the first four stages, where a reviewer already checks the output; the decision stays with a person; operations close the loop.

#StationWhat happensWho acts

01

Intake

Capture correspondence from any channel

AI reads it

02

Classification

Understand intent, route to the case type

AI classifies

03

Guidance

Rules, policy and precedent

AI grounds and cites

04

Drafting

Letters, responses, memos, with citations

AI drafts

05

Review

Check accuracy, add judgment, approve

Human in the loop

06

Decision

Finalize and issue the outcome

A person signs

07

Notice

Send letters and update records

Automation executes

08

Operations

Track performance, learn and improve

The loop closes

  1. Start where a human already reviews the output (judgement stays human). If a person signs the letter today, a model that drafts it changes throughput without changing accountability. That is a defensible first deployment.

  2. Automate the toil around the model, not just the model (executes judgement). Most of the effort in production AI is provisioning, patching, scaling and evidence collection. That is an automation problem, and it is solved.

Five outcomes, and where each one is proven

Rung: data · information · knowledge · judgement

OutcomeDelivered byLab

Modernize mission-critical operations (executes judgement) — wrap legacy systems in intelligent workflows instead of rewriting them. An error string in a log fires an Event-Driven Ansible rule, a playbook runs on the right hosts, the on-call gets an email, and a ticket opens and closes in ServiceNow or Remedy. The system of record stays untouched.

Ansible Automation Platform · Event-Driven Ansible · OpenShift

05 · 07

Improve efficiency and accuracy (information, knowledge) — classification, extraction and drafting move first-pass work off people.

Red Hat AI Inference Server · SDG Hub + Training Hub

01–02

Unlock data-driven insights (knowledge) — retrieval grounds every answer in your own published guidance, with the citation returned alongside.

Red Hat OpenShift AI · vector store · Llama Stack

04

Strengthen security and compliance (evidence → judgement) — signed models, FIPS-validated cryptography, continuous compliance scanning and bias/drift monitoring as platform features.

RHEL · Compliance Operator · TrustyAI · Sigstore

06

Build an AI-ready foundation (data → information) — one platform, one operating model, from a datacenter GPU node to an accredited cloud region.

OpenShift AI · KServe · Red Hat AI Inference (vLLM)

03

One foundation, from bare metal to the taxpayer

Rung: data · information · knowledge · judgement

Most failures happen at the seams between systems, not inside them. The platform’s job is to make those seams boring.

LayerWhat it providesLab

Mission applications (judgement)

Correspondence intake · notice drafting · case summarization · guidance assistant. Systems of record stay where they are — reached through APIs and automation, not replaced.

—

Red Hat OpenShift AI

Model serving — KServe + vLLM (information) · Training — SDG Hub · Training Hub (knowledge) · Pipelines — tune · eval · ship (knowledge) · Model registry — signed versions (judgement) · Retrieval — vector store (knowledge)

02 · 03 · 04 · 07

Red Hat OpenShift (data)

Scheduling · GPU partitioning · network policy · multi-site placement · GitOps delivery. The same cluster runs the modernized case-management apps beside the models they call.

—

Red Hat Enterprise Linux · AI Inference Server (data)

Bare metal GPU nodes · virtualized datacenter · accredited public cloud · classified enclave. Granite models, accelerator drivers and the vLLM-based AI Inference Server in one supported stack. Tested with the hardware: mainframes · TPM · PIV/CAC cryptography.

01

Two vertical bands run through every layer: Trust (judgement) — signed models, FIPS crypto, SELinux, Compliance Operator, TrustyAI drift + bias, audit trail, air-gap mirroring (Lab 06); and Automation (executes judgement) — Ansible Automation Platform and Event-Driven Ansible: provision, patch, remediate, evidence collection (Lab 05).

The federal problem is not “get a model.” It is operate AI without giving up control.

Rung: data · information · knowledge · judgement

Bring the model to the mission — not the mission data to somebody else’s model. Use the model, accelerator and deployment location that fit the workload. One operating model across datacenter, accredited cloud, edge and disconnected — and a glass box you can open and inspect, not a black box.

Inference — serve efficiently with vLLM / llm-d · Data — connect private agency knowledge · Agents — govern tool-using workflows · Platform — scale and operate consistently.

Take-home referenceWhy it matters

Choice

Model freedom (knowledge)

Open models and standard APIs keep the exit open. Modern lock-in limits what you can build next — a worse trap than the old hardware kind.

Control

Data locality (data)

Run inference inside the boundary dictated by FTI, mission data, sovereignty and accreditation.

Operations

Models-as-a-Service (information)

Central platform teams publish governed model endpoints other projects consume — instead of every project building its own fragile AI stack.

Economics

Use accelerators efficiently (data)

vLLM and distributed inference focus on throughput, latency and cost per token rather than GPU ownership as a trophy.

Lifecycle

Predictive + generative (information, knowledge)

OpenShift AI manages the lifecycle of traditional ML and generative workloads so they can coexist in one operational model.

Execution

Ansible closes the loop (executes judgement)

Provision, configure, remediate and collect evidence with deterministic automation around probabilistic AI.

Define the service once — run it wherever the mission needs it

Rung: data · information · judgement

One service definition (executes judgement) — inferenceservice.yaml, a signed model (granite-8b-tax-v1), GitOps delivery from the main branch. Infrastructure as code — the manifest is the capacity plan (Lab 03). oc apply — unchanged: same image · same controls · same skills.

Runs unchanged inWhat differs

Datacenter — bare-metal GPU nodes (data)

Your floor, your hardware, shortest path to the systems of record

the iron

Accredited cloud region (data)

FedRAMP boundary; surge capacity rented for the season, released after

the boundary

Air-gapped enclave (data)

Mirrored registry and models; no internet at inference or update time

no internet

  • Accredit once, inherit everywhere (accredit once — judgement). Signing, FIPS mode, compliance scanning and drift monitoring attach to the platform — so workflow two starts with workflow one’s evidence, and the skills and pipelines carry over the same way.

  • April becomes a scheduling event (information at scale). The 6× filing surge is absorbed by autoscaling on pooled GPUs (Lab 03) — capacity follows the season instead of sitting siloed inside one project’s budget.

  • Placement is policy, not re-architecture (data — where it lives). Moving a workload is a redeploy of the same manifest. Residency and cost decide where it runs, and the exit door stays open.

The useful pattern is a loop, not a chatbot

Rung: information · knowledge · judgement

Predict, explain, act: spot the pattern, turn the signals into language, use only what the agency has approved. Grounding and learning are how the loop earns the right to act; the connected estate underneath is the discriminator nobody else has.

StepTechnologyWhat happens

01 · Predict — spot the pattern

Predictive ML (information)

Telemetry and historical incidents estimate risk: saturation, failure probability, anomaly or likely incident class.

02 · Explain — turn signals into language

GenAI / LLM (information)

The LLM summarizes logs, changes and symptoms into a human-readable hypothesis and next questions.

03 · Ground + act — use what the agency approved

RAG (knowledge) · Ansible (executes judgement)

RAG retrieves runbooks and prior fixes; policy decides whether Ansible recommends, requests approval or remediates. Every action opens and closes an ITSM ticket (ServiceNow, Remedy), so the incident record is the trail. Lab 05.

The knowledge flywheel

(knowledge)

After review, the incident summary, root cause, evidence and successful remediation become searchable operations knowledge for the next event. Generated content is a draft until it passes the same curation and authority rules as any other knowledge record.

Example — “Why is this service slow?” Predictive AI says GPU queue depth is abnormal. The LLM explains the evidence. RAG cites the approved saturation runbook. Event-Driven Ansible scales or reroutes after the required approval.

Boundary — do not let fluency become authority. The LLM can propose a root cause. Telemetry, system state, retrieved source material and deterministic checks establish whether that explanation is actually supported.

Point the same pattern at your logs — MTTR is the proof

Rung: data · information · knowledge

The Lab 04 retrieval stack, aimed at operations: logs, runbooks, incident history and change records become a private notebook the on-call engineer can question — on the cluster, inside the boundary.

Table 1. Where the hours actually live — mean time to resolution, decomposed (representative incident)
detectdiagnosefixtotal

Before — grep · page · guess

unchanged

2h 41m

22m

3h 16m

With the notebook — ask · verify · act

unchanged

24m

22m

59m

Diagnosis −84%: the notebook answers “what changed, has this happened before, which runbook applies” in seconds, with citations. Detect, fix and verify are unchanged — the hours lived in diagnosis. Lab 07 walks it end to end.

  • Dashboards answer anticipated questions (information). A notebook over your own data answers the one you did not anticipate — in language, with citations you check before acting.

  • Logs are FTI-adjacent (data). They carry hostnames, account fragments and case identifiers. The notebook runs on the same OpenShift install it observes — nothing is exported to anyone’s hosted service.

  • Same stack as the taxpayer system (knowledge). The team that grounds answers for operations (Lab 07) has already built the taxpayer-facing version (Lab 04) — one retrieval pattern, two corpora, one governance story.

Ninety days, then ninety more

Rung: data · information · knowledge

Crawl, walk, run. Nothing here requires a rewrite of a system of record — ground the current phase before you scale, and each phase produces something you can show.

Prove (data) — crawl · days 0–90Ground (information) — walk · days 90–180Scale (knowledge) — run · days 180+

Stand up one supported endpoint with the AI Inference Server

Move serving onto OpenShift AI with autoscaling

Promote through a model registry with real approvals

Agree the accelerator capacity plan and where it physically sits

Add retrieval over your own published guidance

Add workflows two through five on the same platform

Settle which data classes may be used, in writing

Tune on agency vocabulary with SDG Hub + Training Hub

Prove the filing-season surge with a load rehearsal

Pick one text-heavy workflow with a human already reviewing

Wire drift, fairness and compliance monitoring

Extend to the disconnected or classified enclave

Measure the baseline before you change anything

Automate provisioning and patching end to end

Report outcomes in mission terms, not token counts

one workflow live, measured

grounded · monitored · automated

surge-proven at scale

What happens after this hour

Rung: judgement

  • Step zero · Lab walk-through. An hour where we run the eight labs together, show and tell, and find the point in the stack where you want to prove value. That scopes the pilot.

  • Step one · Architecture workshop. A half-day with your platform and security teams to size accelerators, place the first workload and name the data classes in scope.

  • Step two · Guided pilot. One workflow, on your infrastructure, with a measured baseline and an agreed definition of success before we start.

  • Step three · Acquisition path. Four Inc. and Carahsoft carry the vehicles and pricing — bring them in early, not at the end.

Point of contact — Brad will follow up. Brad Scalio, Red Hat, bscalio@redhat.com: if nothing else, he will get you to the right person. IRS account executive: Ted Craig, Red Hat. Everyone else, email Brad and he connects you to yours.

Take the labs with you. Everything from today — deck, labs, guides — at https://nommsweymx.github.io/redhat-ai-tax-labs/ (source: github.com/nommsweyMX/redhat-ai-tax-labs). The eight labs are the commands your engineers will run on day one. Follow it on your own: https://nommsweymx.github.io/redhat-ai-tax-labs/adventure.html.

Your move (the next decision is yours).

  • Already a Red Hat customer? Ask for your Solution Architect. Not sure who that is? Email Brad, open a ticket in the Customer Portal and ask support, or ask through your management line. The foundational questions are free to ask and expensive to skip.

  • Start a community of practice. A standing group across platform, security and mission teams, built around one workflow. We will help seed it and we will show up.

  • Bring your hardest question. Air-gapped operation, FedRAMP boundaries, accelerator scarcity, model provenance. If you did not see it here today, that does not mean it does not exist — ask.

  • Bring your cyber team. If nobody from IRS cyber is on today, refer us to your ISSO or security lead. We will run a dedicated security session for them: the appendix, in depth.

Eight labs — real commands, run them yourself

Rung: data · information · knowledge · judgement

An opinionated path on a personal laptop — not an MVP, never production, never on a government computer. Free of charge and open to anyone: one self-contained HTML on the Carahsoft event page, source at https://nommsweymx.github.io/redhat-ai-tax-labs/. Prove it to yourself: watch the model serve on 127.0.0.1.

LabTitleWhat you do

01 · Inference Server

Serve a model inside your boundary (data → information)

Pull the vLLM-based inference server, serve a validated Granite model, and classify a taxpayer inquiry — without a single byte leaving the host.

02 · Customization

Teach it your notice taxonomy (knowledge)

Add agency knowledge as seed YAML, generate synthetic data with SDG Hub, tune with Training Hub, and evaluate against the base model.

03 · OpenShift AI

Survive filing season (information at scale)

Deploy with KServe and vLLM, then watch it autoscale from two replicas to twenty under an April load rehearsal.

04 · Retrieval

Ground answers in your own guidance (knowledge)

Ingest a publication corpus into a vector store and return answers that carry their citation.

05 · Ansible

Automate the toil around the model (executes judgement)

An Event-Driven Ansible rulebook detects inference saturation and remediates it before anyone opens a ticket.

06 · Trust

Prove it to your ISSO (evidence → judgement)

Verify the model signature, check FIPS, run a compliance scan and read drift metrics off live traffic.

07 · Ops notebook

Ask your own logs (information → knowledge)

Ingest logs, runbooks and incident history into an on-cluster notebook, diagnose a live incident with citations — then read the MTTR numbers.

08 · The whole loop

One loop, end to end (data → judgement)

Mainframe and server logs in, an outage-risk model scores who fails next, Lightspeed drafts the rulebook and playbook, a person merges, Event-Driven Ansible runs it, and the assistant answers "how is server8-audits?" with job evidence.

One thing to remember: nothing here needed a public endpoint. No public model endpoint, no internet connection at inference time, no rewrite of a system of record. The labs run the upstream bits on a laptop; what an agency accredits is the supported Red Hat product built from them. Lab 08 chains the whole loop.

One loop, end to end: from mainframe logs to an assistant that probes

Rung: data · information · knowledge · judgement

Lab 08 · the whole loop. Logs in, risk scored, fix drafted by Lightspeed, merged by a person, run by Event-Driven Ansible, remembered by the platform, so you can ask.

The loop: eight stations, and the eighth feeds the first
  1. Mainframe + servers (data): MVSA · server1..12

  2. Vector · Loki (data): OpenShift Logging

  3. outage-risk scorer (information): KServe · sklearn · OpenShift AI

  4. Granite · Lightspeed (knowledge): vLLM · OpenShift AI

  5. Pull request (judgement): a person reviews and merges

  6. Repo → AAP → EDA (judgement): the merge is the promotion

  7. Event-Driven Ansible (judgement): approved job templates

  8. Knowledge base + assistant (knowledge): pgvector · ops notebook; ask, then probe, and the loop starts again

Table 2. Ask the platform
QuestionAnswer, with its evidence

How is server1-taxreturns?

Online, up 41d, mem 62%, 72h risk 0.22 and falling; last change CR-9088. [job 40518 · journald · RB-214]

How is server8-audits?

Restored 03:13 by job 40512 (Xmx 7g); risk 0.91 → 0.34; PR #482 merged, INC-2340 closed. [job 40519]

Which servers are showing online?

13 of 14: server1..12 ok, MVSA reachable, MVSB in its IPL window until 06:00. [job 40520 · estate ping]

  • The loop is the documentation. Every promoted change, its review thread and its job outcome are indexed where the assistant searches. The KM system writes itself.

  • Two kinds of AI, one platform. The scorer and the drafter share a GPU node, a registry and an identity. Predictive and generative are pods, not projects.

  • Promotion is a merge. Repo, AAP and knowledge base update together, and a person decides. Nothing runs from a chat window.

  • Ask, then probe. The assistant’s tools are approved job templates, so "how is server8?" becomes a job with evidence, not a guess.

The questions an authorizing official will ask

Rung: information · judgement

Evidence is information (information) — the authorizing official’s decision is judgement (judgement). The platform produces the first so a person can make the second.

Their questionThe platform controlWhere it livesProven in

Where does our data go when someone prompts the model?

Nowhere. Inference runs on your cluster, in your enclave, on your accelerators.

AI Inference Server · OpenShift AI

Lab 01 · 127.0.0.1, no egress

Can you prove this model is the one we approved?

Model artifacts are signed and verified before they are admitted to the cluster.

Sigstore / cosign

Lab 06 · cosign verify

Is the cryptography validated?

FIPS mode is set once in RHEL CoreOS and inherited up the chain by OpenShift and OpenShift AI; where a component is not inherited, the exception is documented and covered by compensating controls.

RHEL FIPS mode

Lab 06 · fips-mode-setup, sestatus

Does it work with our smart cards and hardware crypto?

Tested with the hardware vendors: TPM, PIV/CAC smart-card authentication and hardware cryptography supported from the operating system up, on mainframes included.

RHEL · hardware certification

Slide 09 · base band

Can this land in our FISMA moderate or high boundary?

Platform controls map to the NIST 800-53 moderate and high baselines; your FIPS 199 categorization picks the venue — the platform is the same in all of them.

RHEL · OpenShift

Slide 11 · one manifest

How do we know it stays compliant next quarter?

Scheduled scans against a hardening profile, with machine-readable results.

Compliance Operator

Lab 06 · compliancescan

What about the applications and containers we build on it?

The same tooling spans your own application lifecycle on the platform: signing, scanning and admission policy at build, at deploy and at run time.

OpenShift build · registry · admission

Lab 06 · signature gate

How do we detect the model drifting or skewing?

Continuous drift and fairness metrics on live inference traffic.

TrustyAI

Lab 06 · drift, fairness

What if we have no internet at all?

Mirror images and models into the enclave; the platform is built for disconnected operation.

oc-mirror · registry

Slide 11 · enclave

Who is accountable when it is wrong?

A named reviewer on the signature, and every automated action launched from one governed console under enterprise RBAC, so each action carries the identity that ran it.

Workflow design · Ansible Automation Platform

Lab 05 · job history