THE ROLE OF ARTIFICIAL INTELLIGENCE AND BIG DATA IN ENHANCING TAX INVESTIGATION AND AUDIT FUNCTIONS

Abstract

Tax evasion and non-compliance pose significant threats to public revenue, particularly in developing economies where tax gaps remain wide. The emergence of Artificial Intelligence (AI) and Big Data offers transformative potential for tax investigation and audit functions. This paper presents a qualitative analysis of the role of AI and Big Data in enhancing tax enforcement, with a focus on global best practices and lessons for African tax administrations. Drawing on secondary data from peer-reviewed studies, international reports, and case studies in Nigeria, South Africa, and OECD countries, the findings reveal that AI and Big Data improve efficiency, detection accuracy, and fraud prevention. However, challenges related to infrastructure, legal frameworks, and ethical considerations must be addressed to maximize benefits. Recommendations are proposed to guide effective adoption in both developed and emerging contexts.