Technological advances in Big Data, analytics and artificial intelligence (AI) have been transforming the entire business landscape, with Fintech innovations emerging at a rapid speed. The tax ecosystem, in particular, with its masses of data and endless computing requirements, is a prime candidate for disruption by cognitive computing and machine learning.
AI-enabled tax applications have already made inroads in some areas of tax compliance, data digitalization and OCR recognition. Innovative companies have found ways to process millions of transactions in seconds, and to automate tax-related work that previously took thousands of HR hours to complete. Future applications can apply AI-driven predictive analytics to financial forecasting or advanced fraud prediction, or enable virtual support systems such as IBM Watson, trained to support tax professionals in their everyday work.
We’ve looked at a number of companies at the forefront of AI technologies that are delivering innovation to the tax ecosystem. Here is a sampling:
Smart Cloud develops industrial-grade AI-driven solutions that improve real-time management of complex situations, including fraud prevention and compliance. These solutions monitor B2B and B2C transactions in real time, or near real time, to detect and respond to suspected fraud and other situations of non-compliance. SmartCloud assists regional tax authorities in fraud prevention efforts, tax revenue recovery, and establishment of a fair tax environment, using AI and digital reasoning. The company, founded in 2009, aims to become a leading provider of real-time Big Reasoning solutions for mission critical environments and the Industrial Internet-of-Things.
Merlon Intelligence leverages the latest advances in AI and machine learning to improve existing financial crime and compliance (FCC) solutions, automating and augmenting their capabilities. Merlon enhances risk assessment and transaction monitoring by utilizing advanced algorithms that continuously learn from multiple sources, such as industry news, KYC reviews, and other management processes. Founded in 2016, Merlon offers the tax industry a solution to help face their increasingly demanding risk and regulatory challenges.
Socure is a leader in providing predictive analytics for digital identity verification. Founded in 2012, Socure’s predictive analytics platform uses AI and machine learning to authenticate identities in real-time based on biometrics and data intelligence from email, phone, IP, social media, and the broader internet. This multi-factor authentication enables real-time verification of a consumer’s digital identity, a risk-mitigating solution for the tax function, as well as any financial institution.
VATBox is a cloud-based technology company focused on simplifying the VAT recovery process through intelligent knowledge-based automation. Founded in 2013, VATBox handles reports, data collection, aggregation, qualification, submissions and the complexities that accompany these processes using a fully automated approach. VATBox implements the highest level of data security and compliance with all international rules and regulations of the various jurisdictions, and offers companies 360⁰ visibility into their VAT spend and recovery of all employee travel and expense transactions, foreign account payables, shipping (DDP), and all other invoices automatically identified with reclaimable VAT.
Taina Technologies is a RegTech platform that helps financial institutions comply with tax regulations. Founded in 2016, Taina delivers intelligent AI-based solutions to enable computers to read, interpret and validate FATCA and CRS tax forms and carry out all the required cross-checks, classifications and calculations. Automating FATCA and CRS compliance effectively empowers financial institutions to reduce their costs, mitigate operational risks and strengthen internal governance – from automated due diligence to withholding taxes calculations.
Tax Foresight , a joint effort between Blue J Legal and Thomas Reuters, enables tax professionals to determine the strength of their tax position. Founded in 2015, the solution uses advances in AI and extensive training by computer scientists and law professors to simulate the judgment of a court based on competing reasonable arguments. Tax Foresight analyzes fact situations using deep learning, discovers hidden patterns in the case law, and generates tailored explanations of its analysis.
With information more accessible than ever, innovative technologies that can extract and analyze masses of data to provide benefits to the tax ecosystem are in high demand. Fraud prevention, risk assessment, identity verification, VAT recovery, compliance and predictive legal outcomes are examples of AI-driven services that are poised to disrupt the tax function. We are keeping our eye on them and their disruptive capabilities. Stay tuned!
Founded in 2012, VATBox implements the highest level of data security and compliance with all international rules and regulations of the various jurisdictions, and offers companies 360⁰ visibility into their VAT spend and recovery. Let us show you how your company can thrive in today’s complex financial times using AI. Request a free demo here.