AI - Its Application in Financial Technology
Redefining Financial Operations with AI: Insights from Dr. Anjulika Salhan
If anything that defines the revolutionary aspect of the 21st century, it has to be Artificial Intelligence. The rise of the AI behemoth is significantly transforming various sectors of society and life. Understandably, its impact on the financial industry is equally undeniable. Dr. Anjulika Salhan is one of the leading figures working on artificial intelligence and its application in the financial sector and tax-related implementation, particularly in tax compliance, to enhance consistency and accuracy and remove manual processes.
AI in Finance: A New Approach
AI is significantly reshaping the machinery of financial technology (fintech) worldwide. From enhancing security measures to streamlining operations, AI has introduced a new approach to the financial industry.
By leveraging advanced AI models, governments, businesses, and other tax authorities can perform several tasks, including:
- Analyzing datasets and recognizing patterns in tax payer’s behavior
- Detecting anomalies and identifying fraudulent activities
- Streamlining document handling and processing
- Monitoring financial transactions
- Minimizing the need for retroactive audits
- Assessing risk factors and assigning risk scores to taxpayers
- Proving taxpayers with real-time answers to queries
Dr. Salhan’s Focus: AI Application in Taxation
As for taxation, Dr.Salhan advocates for the utility of AI technology to successfully develop tools, systems, applications, and solutions that streamline tax compliance.
According to market research, AI adoption in fintech is booming and is projected to hit $61.3 billion by 2031. This growth is spurred by productivity improvements, pandemic-driven tech adoption, and integration with related fields like Regtech and Insurtech.
By harnessing the potential of AI, businesses can achieve:
- Enhanced Precision and Effectiveness: AI adoption can help organizations and tax authorities deal with volumes of data, enabling them to identify trends, patterns, and outliers that indicate risk. The goal is to ensure more accurate tax calculations and optimize the operational process, eliminating errors in human entries.
- Insights Available During: From actively monitoring tax preparation and reporting to facilitating necessary corrections, AI can do a lot of tasks.
- Elimination of Manual Processes: Say goodbye to the legacy system and hello to the power of AI. From filling out various forms to checking documents, AI automation can perform all such tasks, reducing the burdens of repetitive and mundane activities and allowing personnel to focus on more important tasks.
- Cognitive Analytics: Gen AI can remarkably manage complex tax compliances and analyze a business’s sensitivity to taxation. Additionally, it can suggest various options to optimize legal tax exposure.
A Brighter Future
Dr. Salhan aims to change the perception of tax compliance from a daunting, complicated task to an achievable goal that individuals and companies can tackle, thanks to AI tools.