THE FUTURE OF FINANCE: INTEGRATION OF ARTIFICIAL INTELLIGENCE INTO TAX SYSTEMS

Abstract

This article explores the burgeoning integration of artificial intelligence (AI) into tax systems and
its implications for the future of finance. With the rapid advancements in AI technologies, tax authorities and
financial institutions are increasingly turning to AI solutions to enhance tax compliance, streamline processes,
and mitigate risks. This paper examines the key areas where AI is being applied in tax systems, including tax
planning, compliance, enforcement, and fraud detection. Moreover, it discusses the potential benefits and
challenges associated with the adoption of AI in tax administration, such as improved accuracy, efficiency
gains, and the need for robust data governance and privacy protections. Additionally, the article considers the
broader socioeconomic impacts of AI-driven tax systems, including workforce implications and the evolving
role of tax professionals. Overall, this study provides insights into the transformative potential of AI in
reshaping the landscape of tax administration and offers recommendations for policymakers, tax authorities,
and financial institutions to navigate this rapidly evolving terrain.