A STUDY ON RESHAPING TAX COMPLIANCE, ENFORCEMENT, AND TAXPAYER SERVICES THROUGH ARTIFICIAL INTELLIGENCE

Abstract

Artificial intelligence (AI) is a disruptive technological innovation set to change tax compliance, enforcement, and taxpayer services for the better by improving monitoring, detecting tax fraud, targeting audits, boosting revenue, and providing high-quality assistance to taxpayers. This study aims to examine how exactly AI can be applied to transform tax compliance, enforcement, and taxpayer services for the better and what challenges it faces in doing so. Predictive analytics, electronic invoicing, automated risk assessment, chatbots, natural language processing, and pre-filled tax forms are some of the AI solutions that can be integrated into tax systems to help tax authorities process vast amounts of data faster and more accurately than everbefore, thereby reducing errors, detecting fraud, targeting audits more efficiently, and offering better taxpayer assistance. At the same time, the review finds that AI can make tax administrations more accountable, efficient, and effective while reducing compliance costs and revenue losses due to fraudulent activities. Therefore, the study recommends enhancing human decision-making capabilities through AI rather than relying solely on automated processes and emphasizes the importance of effective governance, accountability, transparency, taxpayer protection, and strong cybersecurity infrastructure in ensuring secure and trustworthy digital taxation systems.