Azerbaijan News 20 October 2026 14:44 (UTC +04:00)
Photo: Trend News Agency
BAKU, Azerbaijan, October 20. The State Tax Service under Azerbaijan's Ministry of Economy has established a dedicated committee to identify and manage risks arising from digitalization and the introduction of new technologies, Samira Musayeva, Deputy Head of the State Tax Service, said at the Sustainable Business, Corporate Governance, Risk and Compliance (GRC) conference in Baku on Tuesday, Trend's correspondent reports.
She said that establishing a legal framework, ensuring data security and properly assessing risks are particularly important when introducing artificial intelligence (AI) in government agencies. Regulatory legal acts governing the use of AI by public authorities are currently under review.
According to Musayeva, AI enables tax authorities to analyze information about taxpayers' activities, identify initial risks and improve oversight processes. However, the legal assessment of risks identified by AI and the final decision on whether they warrant liability must remain in human hands.
"Protecting and securing data, identifying initial risks, and ensuring that the final decision is made by the relevant institution are essential when implementing AI. Responsible officials must determine whether the identified risks are substantiated and whether they warrant liability," she noted.
The deputy head emphasized that the potential risks of technological innovations must be considered alongside their capabilities. In this regard, establishing a dedicated committee for organizational risk management is intended to create a preventive oversight mechanism.
"We have established a separate committee for organizational risk management. Its purpose is to identify risks arising from digitalization in advance and prevent the introduction of digital tools and innovations that could pose risks without the relevant committee's assessment," Musayeva said.
She added that digitalization also plays an important role in improving the efficiency of tax administration and optimizing costs. According to her, tax authorities spend 1.16 manats to collect every 100 manats in tax revenue from the non-oil sector for the state budget.
Musayeva noted that adopting new technologies enables government agencies to process larger volumes of data, use resources more efficiently and improve tax oversight.
She also highlighted the importance of technical infrastructure for the secure operation of AI systems, noting that processing data in a closed environment requires high-performance server equipment.
The State Tax Service official also discussed the results achieved through data analytics and automation in tax inspections. According to her, automating the processing of inventory results has saved between seven and nine weeks during inspections. AI-powered analysis of data from millions of receipts issued through cash register systems also enables risks to be identified more quickly.
Musayeva said that AI could also contribute to business growth, an expansion of the tax base and an increase in taxable transactions. This process requires government agencies to develop their human resources and existing capabilities in line with new demands.
"Technology makes it possible to process more data and deliver greater results. As the tax base expands, it is also essential to ensure adequate resources and skilled human capital for its effective administration," she emphasized.