Bernardo Mesquita analyses the risks and opportunities of artificial intelligence in the work of tax authorities

Bernardo Mesquita, principal associate in the tax team at Morais Leitão, is the author of the article “The challenges of implementing AI-based solutions in tax authorities’ decision-making processes”, where he examines the growing impact of artificial intelligence (AI) on tax authority decision-making.

In the article, published by International Tax Review (ITR), our lawyer acknowledges the efficiency gains that these technologies can bring, from automating audits to reducing bureaucracy, but warns of significant risks. The opacity of algorithms, the potential for data bias and the lack of clear reasoning in automated decisions are among the key challenges identified.

Bernardo Mesquita advocates for essential safeguards, including the prohibition of fully automated tax rulings, mandatory human oversight, strict regulation of access to sensitive personal data, the right of taxpayers to be informed, and compensation mechanisms in cases of error.

The conclusion is clear. AI may be a valuable tool for tax administrations, but its implementation must be carried out responsibly, ensuring respect for taxpayer rights and the principles of transparency, justice and the rule of law.

Read the full article here.