From www.accountingtoday.com: [US context] The Internal Revenue Service is increasing its reliance on artificial intelligence to enhance case selection for audits amid significant workforce reductions, which have seen over 11,400 employees laid off.

A report from the Treasury Inspector General for Tax Administration indicates that AI can improve the efficiency of selecting tax returns for examination, addressing issues of resource waste and unnecessary burdens on compliant taxpayers.

Despite recognizing the potential of AI, the IRS has yet to establish processes to evaluate the performance of its AI models against past methods, raising concerns about accountability and effective governance.