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Reform Support

Supporting reforms to ensure efficient and effective revenue administration and public financial management

Preparing an artificial intelligence (AI) strategy for the Estonian revenue authority

The Commission provided technical support to the Estonian Tax and Customs Board (ETCB) with the aim of (a) exploring the feasibility of using human-centric AI and (b) developing a strategic framework. The technical support would facilitate the authority’s transition to a higher level of digitalisation through AI.

Context

AI is a promising new technology that could help revenue authorities in addressing certain persistent or emerging tax and customs challenges that might require a qualitative leap in process automation and data analytics. The development of a strategic vision is however a prerequisite for making full use of the possibilities that AI can offer whilst proactively reflecting on new risks and complexities inherent to AI. The project is linked to the Commission’s AI and tax agendas.

Support delivered

At the end of the 14-month project, the authority has at its disposal:

  • A feasibility study on using AI in specific tax and customs matters and in the ETCB’s organisation;
  • A strategy and action plan to integrate AI in the ETCB;
  • Technical descriptions for two AI-driven solutions, specifically X-ray Automated Analysis and Network Fraud Risk Detection, including requirements, desired functionalities, a visual prototype, and proposed architecture that would support the solutions.

Results achieved

The technical support aided the ETCB in setting out a path for its further digitalisation through AI. The Estonian authority has, among other benefits, gained:

  • an improved understanding of the feasibility of using AI and improved strategic capabilities concerning the integration of AI;
  • improved technical knowledge about AI-driven solutions;
  • a clear set of actions in the form of an indicative roadmap to deliver selected AI solutions;
  • the ability to showcase its vision for two new AI solutions in the form of visual prototypes; and
  • access to better documentation of the organisation’s key processes and architecture.