- GAO said longstanding management and technology issues continue despite VA modernization efforts
- Earlier reviews found weaknesses in contractor exam oversight and claims processor training
- The watchdog said stronger planning and performance metrics are needed for modernization initiatives
The Government Accountability Office found that the Department of Veterans Affairs’ modernization initiatives have not resolved persistent issues involving disability compensation management and the implementation of advanced technologies.
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What Challenges Has GAO Identified?
According to the GAO report published Monday, VA is enhancing its IT infrastructure to support more accurate and efficient disability compensation claims processing. Despite those modernization efforts, GAO said the agency continues to contend with issues in program management and technology implementation.
Earlier GAO reviews also identified deficiencies in the oversight of disability examinations conducted by contracted medical providers and in training its claims processors. The agency further reported that the Veterans Benefits Management System lacked comprehensive planning and measurable performance goals, limiting VA’s ability to assess the progress of its modernization.
The findings are consistent with a 2025 GAO assessment of the department’s online appointment scheduling modernization, which also found shortcomings in project planning and requirements management, prompting recommendations for a comprehensive modernization schedule and stronger oversight.
How Could AI Support Disability Claims Processing?
GAO said VA is exploring the use of artificial intelligence to further automate disability claims processing. While AI could enhance efficiency, the watchdog warned that generative AI poses transparency and oversight challenges and recommended using its AI accountability framework to guide implementation.
The agency previously outlined that framework as guidance for federal agencies, including VA, emphasizing governance, data quality, performance assessment and ongoing monitoring to support responsible AI adoption.
What Did GAO Recommend?
According to the report, the VA provided more than $195 billion in disability compensation to over 6.9 million veterans and their families during fiscal year 2025. It also noted that the Honoring our PACT Act of 2022 directed the agency to develop a plan to increase the speed and accuracy of disability claims decisions. Since 2021, GAO has issued 43 recommendations, with 28 implemented and 15 still in progress.
