The changing landscape with Artificial Intelligence for the world of tax
The ever increasing influence of AI and the world’s contingency on it for improvement is a fact well known to all of us. May it be the high-end technological industries or health care sectors, educational institutions, coal mines or the tax department, the utility of artificial intelligence is now heavily realized and is implemented to yield better results, performance and proficiency in the workplace.
The applications or the very presence of Artificial intelligence in the domain of tax was unimaginable till it happened. Uttering the words ‘tax office’ triggers a picture of a bunch of government officials sitting with mountains of paper works and getting things done manually.
This scenario has changed or is still changing, however, as the tax department makes moves to shift towards the digital culture by exploring the many potentials and promises artificial intelligence is bestowed with.
Ascending the ladder of progress with AI
Taxation happens to be the most important government activity. Needless to say that the tax we pay helps to build a better nation for us and our descendants. In the wake of the pandemic, the government has been trying to leverage the tax collected in installing adequate equipment in health care sectors for better treatment provided to the ones who are infected. However, the tax departments have faced certain setbacks amidst the wake of the pandemic caused by COVID-19. But the work of tax officials and the department as a whole cannot cease to function as the need for adequate funds was aggressively realized amidst the pandemic.
How is AI helping Taxation up-gradation
Knowing that how much Artificial intelligence means to the tax department, it’s now time to take look at why is AI so important for taxation. Taxation up-gradation with the help of AI is helping the departments in two most important ways.
- AI helps to eliminate repetitiveness :AI-driven robotics process automation is being used to automate operations so that repetitiveness can be circumvented. Tax officials are overwhelmed by repeating the tasks of collecting salary information and arranging them.
RPA is one good method to avoid inconvenience, initiating fruitful execution of tasks.
- Using machine learning to extract key data from documents : Tax professionals are often burdened with a lot of data and are required to extract the key data. This work gets tedious at times which makes them prone to errors.
Machine learning, in this case, can help to extract useful data and identifying relevant information and putting them in software systems correctly.
SM blurb: Tax departments are now making a shift in their work culture, from traditional to digital methods as the operations keep taking complicated turns. The introduction of AI and machine learning to their infrastructure can aid to curb the problem.