As we currently understand, we live in an era where data usage and processing have a profound impact. The presence of Artificial Intelligence (AI) as a byproduct of current technological advancements has completely transformed human lifestyles and thinking patterns. AI can now serve as an optimal support system capable of increasing work efficiency and performance.

The sophistication of AI has successfully advanced various fields, such as industry and research. Not only can the presence of AI reduce manpower requirements, but it is also proven to streamline workflows. AI is capable of not only collecting data but also processing and interpreting it according to specific needs.

The implementation of AI has now permeated various sectors, simplifying our daily workflows. The use of AI has also opened opportunities for rapid growth in various sectors, one of which is the taxation sector.

According to research by Ms. Islamiah Kamil, M.Ak., a lecturer in the Accounting Study Program at Universitas Dian Nusantara (UNDIRA), the implementation of AI in the taxation world today offers significant benefits, particularly for the sustainability of the tax sector, and represents Good Governance comprehensively.

To understand how AI can support tax performance, we must first recognize that AI operates by reading data contained in every tax report along with individual information. This data is subsequently utilized to enhance Tax Compliance through information obtained via digital tax platforms such as E-Filing and E-Billing.

AI can access transaction records and inventories as evidence for taxes to be imposed on taxpayers. This accessibility allows taxpayers to calculate the total tax they must pay according to the determined amount based on their income and total wealth. At the same time, the presence of AI also streamlines the workflow of tax auditors by facilitating the verification process of payable tax data, providing a mutual benefit for all parties involved.

However, the integration of AI into the tax system is not without challenges. The main obstacles currently faced are rooted in human resources, specifically regarding digital literacy levels, dynamic regulatory changes from the Directorate General of Taxes (DJP), and the generational gap. The lack of readiness among some segments of society to adopt this advanced technology potentially creates access barriers, where taxpayers who are less technologically fluent may find it difficult to follow automated tax mechanisms.

Furthermore, there are considerations involving data security. The potential for misuse, data manipulation, and user data security are issues that must be optimized before we can fully direct tax reporting—which contains not only identities but also other sensitive taxpayer information—toward total automation.