Two Key Functions of AI in the Tax Sector

During a panel discussion at the Tax Forum, experts emphasized that AI can also significantly simplify and accelerate tax processes for companies. Its first key function is to facilitate efficient knowledge transfer, particularly through the use of chatbots and virtual assistants. These tools can provide taxpayers and tax department staff with round-the-clock information on complex tax issues, ranging from the latest legislative changes to specific guidance on interpretation. This not only eases the burden on internal processes but also significantly improves the quality and speed of information delivery.

The second key function is data analysis. AI agents can automatically evaluate large volumes of tax-related data, identify patterns and potential risks such as tax discrepancies, and help optimize tax processes, for example, in connection with advance VAT returns or transfer pricing. In this way, the tax function can become increasingly data-driven and proactive, leading to greater accuracy and better-informed strategic decisions.

Prerequisites and potential pitfalls

One prerequisite for the effective use of AI in the tax sector is a central data lake. It can consolidate a wide range of data sources and thereby resolve many interface issues. This can deliver substantial efficiency gains by making data available consistently, centrally and in real time.

Nevertheless, the human element remains indispensable. Critical thinking, scrutiny of results and the ability to interpret AI-generated insights appropriately are crucial. People not only help train AI systems but also learn from them: errors become apparent, processes improve and knowledge deepens. The quality of AI results depends largely on the input data. It is therefore essential to consider why the data is needed, whether it is up to date and which information is genuinely relevant. A focused, technically sound and up-to-date database, such as a specialized “payroll tax agent” for payroll tax questions, helps prevent hallucinations and ensures precise, context-sensitive answers.

The Tax Forum Berlin

The “Tax Forum Berlin” is Germany’s flagship event on taxation. It promotes dialogue among representatives from business, politics, the tax administration, the judiciary, academia and the advisory professions on current tax policy as well as technological and global trends in tax law.