An Analysis of the Applicability of Artificial Intelligence Techniques to Problem-Solving in Taxation Domains

Artificial intelligence (AI) technology has been applied increasingly to accounting problem-solving in the audit domain and, to a lesser extent, to the taxation domain. Generally, categories that are most amenable to AI modeling have the following features: 1. a heuristic, rather than algorithmic, p...

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Bibliographic Details
Published inAccounting horizons Vol. 3; no. 2; p. 14
Main Authors McCarthy, William E, Outslay, Edmund
Format Journal Article
LanguageEnglish
Published Sarasota, Fla Sarasota, FL :American Accounting Association, c1987 01.06.1989
American Accounting Association
Subjects
Accounting
Algorithms
Artificial intelligence
Decision making
Heuristic
Problem solving
Semantics
Tax planning
Taxation
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Summary:Artificial intelligence (AI) technology has been applied increasingly to accounting problem-solving in the audit domain and, to a lesser extent, to the taxation domain. Generally, categories that are most amenable to AI modeling have the following features: 1. a heuristic, rather than algorithmic, problem-solving process, 2. symbolic, rather than numeric, knowledge, and 3. a relatively high ratio of conceptual types to conceptual instances. Although taxation would appear to be a domain where numeric computation and algorithmic processing dominate, AI methods are appealing because tax planning decisions often rely on the heuristics of experienced decision makers. Deterrents to entry in the AI field include: 1. a heavy investment in hardware and software, 2. the extensive commitment of human resources to develop and test a system, and 3. the possible lack of marketability. However, investing in AI research in the tax domain can lead to enhancement in the decision process.
ISSN:0888-7993
1558-7975