Source: Brocardi

The Italian Tax Authority, Agenzia delle Entrate, has announced the implementation of artificial intelligence (AI) systems to enhance fiscal controls and combat tax evasion. These AI-powered systems will analyze large datasets to identify irregularities, improve detection of fraudulent activities, and optimize resource allocation for audits.

The initiative aims to increase efficiency and accuracy in tax enforcement, addressing long-standing challenges in monitoring complex financial transactions. By leveraging advanced analytics, the agency can quickly flag suspicious patterns and focus on high-risk cases, reducing the administrative burden on compliant taxpayers.

Concerns about data privacy and algorithmic bias have been raised, prompting the agency to emphasize transparency and compliance with Italy’s data protection laws. The move underscores a broader trend of integrating AI into public administration to enhance accountability and improve governance.