Deep learning and artificial intelligence (AI) were once concepts that were highly theoretical, but as the digital transformation has progressed, they are now firmly entrenched in everyday reality. Not only are deep learning and AI readily apparent in a variety of operations, from website chatbots to market trend predictions, but also as a highly efficient VAT tool. But before we can explore this concept, let’s define deep learning.
Understanding Deep Learning
Deep learning is considered the highest form of artificial intelligence to date. Through advanced algorithms, AI is able to examine information, assess it, and learn from it. Then, as it processes this data, it can determine and even predict how this information may change according to certain trends in whatever industry it has been set to analyse and learn about. AI is not constrained by the limitations of the human mind and can sift through big data in a matter of minutes, whereas it would take a human months or even years to do the same. This capability is particularly relevant to the Fintech industry, with its myriad of manual tasks and enormous amounts of data.
In the realm of tax reclaim, deep learning has the potential to serve as a VAT tool to make the process from reporting to claiming as efficient and compliant as possible.
Deep Learning and VAT Recovery
How does VATBox use deep learning to recover VAT in the most efficient way possible? VATBox utilizes the power of four technologies in conjunction with one another: computer vision, optical character recognition (OCR), data extraction, and natural language processing (NLP). With computer vision, AI can accurately ‘see’ receipts and identify logos of global companies. It is a lot easier for AI to scan receipts and identify where they have originated than it is for a human employee to sift through piles of paperwork. Using OCR, AI can look at an image and break it down into smaller images, such as an invoice with multiple receipts, which can then be transformed into a document that can be edited by an employee if needed.
With data extraction, AI can accurately extract information from the receipts and begin to fill in reclamation forms with the necessary information such as the country, accommodation name, amounts, and more. AI can detect missing information and flag it so that the invoice can be edited and corrected.
Lastly, NLP enables AI to listen, read, interpret, and analyse the information so that they can assess which parts are relevant to the tasks at hand. While AI can perform many of the functions that a human employee can, it is able to do so in a much more efficient and errorless manner. However, a human employee will still need to assess any errors that are flagged as AI cannot do everything… yet!
The Way of the Future
AI and deep learning are the way of the future. As the world becomes increasingly globalized, enterprise T&E will grow, as will the need for compliant and accurate VAT recovery. As a VAT tool, AI has the ability to provide the most accurate invoicing and processing practices possible in order to recover VAT, as well as to accurately file according to all foreign VAT reclaim procedures at the click of a button.