Harnessing the Power of Technology: Policy Brief

This policy brief focuses on the potential that new technologies, especially Artificial Intelligence (AI), might bring for tax administrations, highlighting, nevertheless, the risks that the adoption of these technologies suppose from an ethical and cybersecurity perspective. To this end, this note highlights the experiences shared during the last Digital Tax Administration seminar that took place in Vienna from the 25 to the 28th of September 2023, and that was co-organized by the IDB and the Global Tax Policy Center (GTPC) at the Vienna University of Business and Economics (WU). The paper focuses on the three priority issues identified at the last session of the Conference. First, the transformative role of Artificial Intelligence within the processes of tax administrations is identified. Second, the ethic challenges of using new technologies and the necessity of a framework to assess the use of new technologies is described. Third, the importance of providing tax administrations and taxpayers with adequate cyber security to protect sensitive information is underlined. Finally, this policy brief draws the way forward in the digital transformation of tax administrations.