ATO stepping up AI capabilities to be 'leader' by 2030

In a document released under freedom of information legislation, the agency sets a target of 2030 to be a leader in "industrial ethical, impactful and scalable A&AI [automation and artificial intelligence] solutions".

The target is a major step for the ATO, which in its 2022-25 digital strategy only mentions artificial intelligence once, as part of supporting clients.

Now, the agency is looking to integrate AI across the ATO, including analysing documents, disrupting fraud, profiling clients and interpreting laws.

"We use artificial intelligence to help and guide taxpayers, reduce compliance costs, and streamline business processes," an ATO spokesperson said.

The strategy identifies closer interaction between staff and AI tools, including a "systematic enterprise approach to closing the loop between AI and humans".

The AI strategy, endorsed in 2022, is part of a broader focus on utilising the vast quantities of data the ATO has access to.

The leap into AI had been flagged by the ATO's deputy commissioner Marek Rucinski last year, when he outlined how the agency was identifying tax fraud and superannuation underpayments, recovering billions of dollars in unpaid tax and fraudulent claims.

Taxpayers filling out their tax returns are now provided with real-time prompts to check amounts in their income tax returns, to avoid future compliance action and penalties, while also protecting revenue.

However, as AI tools have become more sophisticated and widespread, so too has scrutiny of their effects.

Two parliamentary committees are currently examining the deployment of AI, both inside government and across the economy, while the Australian National Audit Office is accepting submissions on the ATO's adoption of automation and artificial intelligence, with a report due by the end of the year.

The ATO has strict rules around staff use of AI tools, including avoiding sensitive ATO data being mined by AI platforms for use outside the agency.

"We take a measured and cautious approach to exploration of AI tools and techniques to ensure they will amplify our workforce and accelerate value and service delivery while being deployed safe and responsibly," the spokesperson said.

Last year, the Digital Transformation Agency and the Department of Industry Science and Resources released interim guidance on government use of generative artificial intelligence platforms, such as ChatGPT and Microsoft Copilot.

The guidance recommends that agencies consider commercial agreements with AI providers, to ensure data security and privacy requirements.

"As the Government's understanding of the legislative, administrative and broader risks of this technology evolves, the DTA, in collaboration with DISR, will investigate the development of whole-of-government policies and frameworks relating to the responsible use of AI in government."