The Impact of Artificial Intelligence on Taxation: The Role of AI and Key Use Cases

Avnish Goyal

Abstract: The history of Artificial Intelligence (AI) spread over decades of breakthroughs, challenges, and evolving concepts. Initially emerging in the mid - 20th century, AI has evolved from theoretical ideas to practical applications that impact nearly every industry today. AI has revolutionized the field of taxation by automating routine tasks, enhancing decision - making, improving compliance, and enabling more efficient tax planning. Initially employed to handle basic tasks such as tax filing and audits, AI has evolved to incorporate more sophisticated functions, including fraud detection, predictive analytics, and dynamic regulation monitoring. Today, AI is not only streamlining tax functions but also assisting with complex tasks like VAT recovery, real - time reporting, and improving risk management. As AI continues to develop, its potential to optimize tax strategies and improve tax compliance across multiple jurisdictions has become a key driver of transformation in the taxation industry. This paper discusses the major applications of AI in taxation, the advantages and challenges of its implementation, and explores the future potential of AI combined with quantum computing to further enhance the efficiency and accuracy of tax systems.

Keywords: Artificial Intelligence, AI, Taxation, Finance, AI Use Case, Accounting, Auditing, Tax Compliance, Machine Learning; Regulatory Challenges

How to Cite?: Avnish Goyal, "The Impact of Artificial Intelligence on Taxation: The Role of AI and Key Use Cases", Volume 14 Issue 5, May 2025, International Journal of Science and Research (IJSR), Pages: 1213-1220, https://www.ijsr.net/getabstract.php?paperid=SR25518190955, DOI: https://dx.doi.org/10.21275/SR25518190955