AI Now Helping the IRS
Artificial intelligence (AI) is in the news almost every day. While still in its infancy, it is growing in awareness and use in giant leaps. The most recent example comes from Alexis Leondis, an opinion columnist for Bloomberg. Leondis describes an AI application the IRS uses to assist in identifying complex partnership structures that could lead to discovery of noncompliance and, thus, more revenue for the U.S. Treasury.
But Leondis, who refers to the IRS as an “archaic beleaguered agency,” points out that we should not expect a future where “green visor wearing robots” run the IRS. The Netherlands presents a good example. “In 2013, the Dutch tax authorities started using a self-learning machine algorithm to check that child-care subsidies were going to the correct recipients.” Unfortunately, it had a racial bias element in it that caused the fall of the government and, of course, the termination of the AI experiment.
Despite all of the excitement and the rush to adopt AI, it is still not quite ready for prime time. I have no doubt it will get there, but it will likely get there in uneven stages. To hear more about this AI phenomenon and how it might impact business valuation, register for my BVR webinar on this topic on March 29, 2023.
Stay up to date on the latest developments in the BVLS field by subscribing to BVLaw. What's your opinion on this topic? Let us know by emailing our BVLaw editorial team at email@example.com.