MIT Media Lab Visit
Hosts: Sandy Pentland, MIT Professor, and Jeffrey Saviano, EY Global Tax Innovation Leader, MIT Connection Science Fellow, co-lead of MIT/EY (Boston)
Transportation: A bus sponsored by EY will facilitate transportation between the Westin Hotel and MIT, departing at 1:45pm.
Up to 50 conference participants will be invited to a deep dive in the afternoon breakout session at the MIT Media Lab. The break-out session will address the application of advanced technologies – and data analysis – to solve complex tax problems within both the private and public sectors, and, how those tax problems significantly impact businesses and tax authorities.
The topics for the break-out session are:
- Artificial Intelligence (AI) is addressing a number of tax issues today – within both the public and private sectors:
- In the private sector – AI machine learning tools can be employed to detect tax data inaccuracies, classify transactions, assets, people, etc… and AI-natural language processing solutions can elicit and synthesize tax factors from natural language. For example, natural language processing tools are used to extract key tax attributes from contracts, purchase orders, SEC filings, etc.
- In the public sector – AI can improve tax authority communications with taxpayers, derive better taxing policies by accessing new data streams to inform more just and fair taxing policy decisions, better identify and prevent tax fraud, and alter taxpayer behavior to increase voluntary compliance.
- In 2019, Sandy and Jeff led a session for the World Bank where a critical need was discovered for new AI/data systems for tax purposes to help developing nations. They will provide an update on a pilot of such a system across multiple countries.
- Distributed ledger technology (DLT), such as blockchain, has the potential to affect business transactions like the internet did with consumer transactions. The transparency and immutability of DLT can reduce inefficiencies in current taxing systems. It can be used to determine the origin of goods for customs duty purposes or for the determination of provenance under foreign trade agreements. Many pilots across the globe extend DLT to Tax IDs, withholding taxes, VAT, land/property registry and property taxes, intergovernmental remittances, etc. Since every transaction has a tax effect, there are vital opportunities to improve the efficiency and administration of taxes through new DLT platforms.
- Pentland’s ‘Open Algorithm’ Theory (OPAL) solves how insights from data can be shared more effectively and safely, rather than sharing the data itself. The application of OPAL data insights to complex tax issues – such as how governments can better fight tax fraud, an annual, global, $3T problem, will be discussed.
To sign up for this session please select it from the session list when you register. Space is limited to 50 participants.