AI tools are increasingly used to assess legal and fiscal compliance, but their conclusions can be dangerous due to incomplete information. While AI can effectively summarize and analyze laws, it cannot account for knowledge it has not been trained on, such as updated regulations or obscure technical specifications. This reliance on AI for compliance can lead to significant failures, especially when the AI is used as a decision authority rather than just an assistant, as demonstrated by a fictional retailer's incorrect assumption of compliance due to a missed SCO-specific fiscal-signing requirement. AI
IMPACT Highlights the critical need for human oversight and comprehensive data when using AI for regulatory compliance.
RANK_REASON Expert opinion piece discussing the limitations of AI in compliance checks.
- Darko Pavic
- Fiscal Solutions
- Global Fiscalization
- Organization for Economic Cooperation and Development
- Retail Technology
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