Two Key Functions of AI in the Tax Sector

During a panel discussion at the Tax Forum, experts emphasized that AI also offers significant simplifications and time savings for companies in the tax sector. The first key function is facilitating efficient knowledge transfer, particularly through the use of chatbots and virtual assistants. These tools could provide taxpayers or employees in tax departments with round-the-clock information on complex tax issues—ranging from the latest legislative changes to specific guidance on interpretation. This would not only alleviate the burden on internal processes but also significantly improve the quality and speed of information delivery.

In the second major area of data analysis, AI agents use large volumes of data to automatically evaluate tax-related information. In doing so, they would recognize patterns, identify potential risks such as tax discrepancies, and assist in optimizing tax processes—for example, with advance sales tax returns or transfer pricing. This would make the tax function increasingly data-driven and proactive, which could lead to greater accuracy and strategic decision support.

Prerequisites and Pitfalls

However, one prerequisite for the effective use of AI in the tax sector is a central data lake. This can consolidate a wide variety of data sources and thereby resolve many interface issues. This leads to a massive increase in efficiency, as data is available consistently, centrally, and in real time.

Nevertheless, the human element remains indispensable: critical thinking, questioning results, and the ability to interpret AI insights meaningfully are crucial. People not only help train the AI but also learn from it—errors become apparent, processes improve, and knowledge is deepened. It’s important to note that the quality of AI results depends largely on the input. It is therefore essential to always check why data is needed, whether it is up-to-date, and which information is truly relevant. A focused, technically sound, and up-to-date database—such as a specialized “income tax agent” for income tax questions—helps prevent hallucinations and ensures precise, context-sensitive answers.

The Tax Forum Berlin

The “Tax Forum Berlin” is the flagship event for taxation in Germany. It focuses on fostering dialogue with the business community, politicians, tax authorities, the judiciary, academia, and consulting firms regarding current tax policy and technological and global trends in tax law.