Artificial Intelligence in Tax Collection Optimization

Abstract

To enhance efficiency, accuracy and compliance, this paper will look at the utilization of artificial intelligence (AI) in streamlining tax collection systems.  Through the application of machine learning algorithms, natural language processing and data analytics, Artificial Intelligence (AI) can significantly enhance tax data processing, fraud detection and customer contact.  The paper evaluates AI-based solutions which have been incorporated into various tax systems, and the effectiveness with which they have been used to reduce administrative costs, reduce tax evasion, and streamline the auditing process.  The results of the research show that artificial intelligence (AI) applications such as anomaly detection and predictive analytics in localities where they are adopted have positively affected the increase in tax revenue and its collection.  Furthermore, AI-based chatbots and virtual assistants have enhanced customer services as they provide answers fast and correctly.  However, the problem of algorithmic transparency, data privacy and legacy system interoperability were observed to require additional attention.  The findings show the way AI will transform the process of taxes and give advice to professionals and politicians on the use of these technologies and address the ethical and legal concerns.