Harnessing AI and data for tax administration
Artificial intelligence (AI) and machine learning are rapidly reshaping economies and public institutions, including tax systems. For tax administrations, the key challenge is not whether to adopt AI, but how to create the right foundations to use it effectively.
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Harnessing-AI-and-Data-for-Tax-Administration.pdf
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Twivwe Siwale shares three areas that policymakers in developing countries should focus on to harness AI for tax administration.
This toolkit outlines why tax authorities need to establish governance frameworks for AI now, what institutional and data foundations are essential to maximise its benefits, and how AI can strengthen both enforcement and taxpayer services.
AI offers promising applications for tax administrations, but realising these benefits is far from automatic and depends critically on having the right foundations in place. Success requires a solid foundation in three areas: high-quality data, skilled staff, and robust governance frameworks for data privacy and security. These foundations become even more important as tax authorities adopt AI technologies.