Beyond Automation: Unleashing The Future Of Artificial Intelligence In Indonesian Tax Administration

Abstract

Many governments, including Indonesia, consider Artificial Intelligence (AI) as an essential tool for promoting economic growth and improving national competitiveness. However, the rate of AI adoption remains sluggish and the Indonesian Tax Administration is either not completely ready for AI adoption. This paper investigates the early stage of Artificial Intelligence’s (AI) function in Indonesian Tax Administration using the Technology Acceptance Model (TAM). The researcher explores tax administrator’s perceptions, attitudes, ease of use, usefulness, intentions to use, and system utilization. An in-depth qualitative interview with four tax administrators shed light on the formation of AI through two technologies: Business Intelligence (BI) and chatbots. The research highlight diverse views on AI's ease of use due to unclear definitions, emphasizing the need for a shared understanding aligned with the national AI strategy. AI's perceived usefulness is recognized while varied attitudes toward AI adoption underscore the significance of training and data quality management. The informants revealed positive intentions for AI integration, particularly in compliance analysis and taxpayer supervision. While acknowledging limitations, future research must involve a wider variety of AI applications and a more diverse participant cohort in order to address the unique aspects of AI integration in taxation.