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.