Exchange Episode: Roadmapping to Overcome VAT Data and Reporting Challenges
Vertex and Thermo Fisher panel session.
There’s no question the impact of artificial intelligence (AI) will soon be felt in tax departments. However, AI still poses obstacles for those interested in harnessing its potential benefits.
Here’s one challenge: Let’s say you’re a bank using a form of deep learning AI to extract value from huge volumes of data related to mortgage lending. The system does a great job, building its own models and improving your decision-making. But it’s almost impossible to understand how the AI created those models. So, what happens when a regulatory body needs to know how you arrived at your decisions? How can that regulator peer inside your AI “black box?”
It’s not difficult to imagine how applications of AI in tax could encounter this type of scenario, which is described in a Harvard Business Review article Artificial Intelligence for the Real World. The authors — Thomas H. Davenport, professor at Babson College, research fellow at MIT and senior adviser at Deloitte Analytics; and Rajeev Ronanki, principal at Deloitte Consulting — set out a four-part framework to help companies overcome common obstacles while achieving their AI objectives:
While these speedbumps are real, the authors are bullish on AI’s future. They conclude that “companies that are adopting AI in moderation now — and have aggressive implementation plans for the future — will find themselves as well positioned to reap benefits as those that embraced analytics early on.”
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.
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