Abstract: Leveraging Artificial Intelligence for Strategic Decision-Making in Tax Administration and Policy Design presents Artificial Intelligence (AI) – both its opportunities and uncertain consequences – within the sphere of public tax administration. We show how tax administration, as a strategic operator of AI, can draw from its traditional managerial methods and management sciences to augment the ability of AI to decide strategically in the design of tax policy and the creation and manipulation of incentives and payoffs that motivate taxpayer decisions. AI has arrived at the doorstep of a techno-economic moment that has knock-on effects affecting the very pillars of society. We argue that it is the task of decision-makers to leverage AI but also to ask themselves – are there questions with uncertain answers that AI cannot help us with? As new models of machines and services become available to help us navigate our environment, AI capable of doing strenuous and difficult work without pause becomes a partner for innovation and decision-making. Exploring the explication of large recognitive models, we highlight the implications of AI for tax administration business processes, and for key areas of operations. The joint distribution of discrete data policies implicitly suffices to reflect the multi-routing of communications and identifying agent principals, including transactions and interactions in a digital landscape where digital profiling predicts and infers possible agent actions – buying, selling, manipulating, cheating. Lessons from current AI models serving image processing or vector classification become incredible platforms for new risk management workflows. However, supplementing AI Risk Assessment models, management must prepare and maintain an intuitive feel for reality and collective unpredictability, the very characteristics that distinguish human strategic thinking and decision-making from machines – that model all the inductive and deductive relationships and their distribution through a holdout remainder set.
Keywords :Artificial Intelligence, Strategic Decision-Making, Tax Administration, Policy Design, Data Analytics, Machine Learning, Predictive Modeling, Automation, Risk Assessment, Tax Compliance, Revenue Forecasting, Fraud Detection, Natural Language Processing, Data-Driven Insights, Real-Time Monitoring, Taxpayer Behavior, Decision Support Systems, Algorithmic Optimization, Policy Simulation, Digital Transformation, Tax System Efficiency, AI Governance, Intelligent Systems, Behavioral Analytics, Public Sector Innovation, Regulatory Compliance.
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