BAKU, Azerbaijan, October 20. AI saves Azerbaijan's tax authorities 7-9 weeks in inspections, Samira Musayeva, Deputy Head of the State Tax Service under the Ministry of Economy, said at the Sustainable Business, Corporate Governance, Risk and Compliance (GRC) conference in Baku on Tuesday, Trend's correspondent reports.
Musayeva added that artificial intelligence (AI) and data analytics play an important role in improving tax oversight, identifying risks promptly, and increasing the efficiency of tax inspections,
She said that decision-making and securing the necessary funding in government agencies can present certain challenges compared with the private sector. For this reason, digitalization, the introduction of electronic services and the development of relevant infrastructure are among the main priorities of the tax authorities.
According to Musayeva, successful digital transformation requires more than the introduction of technology. Infrastructure readiness, staff qualifications, the availability of intangible assets, and their regular updating also play an important role.
"Digitalization and the development of electronic services remain a constant priority for the tax authorities. The key issue is not only introducing modern technologies but also ensuring the necessary infrastructure and human resources for these systems to operate," she noted.
The deputy head said that digital solutions in tax administration also help optimize costs. According to her, tax authorities spend 1.16 manat ($0.68) to collect every 100 manat ($58.82) in tax revenue from the non-oil sector for the state budget.
She emphasized that data security is particularly important when implementing AI. In particular, processing confidential information in a closed environment requires high-performance server equipment.
"Security must remain a priority when implementing AI solutions. Processing data in a closed environment requires appropriate technical capabilities, including high-performance server equipment," Musayeva said.
The State Tax Service official also highlighted the importance of using AI to analyze data obtained from cash register systems. According to her, millions of VAT receipts record product names every day, creating extensive opportunities for tax analytics.
"Processing this data using AI solutions can make it possible to analyze products by sector, identify risks in transactions, and assess characteristics such as whether products are organic or inorganic. The main goal is to identify potential risks promptly and provide tax authorities with information promptly," she noted.
Musayeva said digital tools and AI solutions enable tax authorities to analyze large volumes of data more quickly, identify risks in advance and conduct targeted oversight more effectively.
