Budget 2024: Boost AI tech in taxation, PPP model, building trust, say experts
The Centre and the state have already implemented policies focusing on AI such as the Bhasini program, and YuvAI for skilling youth
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Union Finance Minister Nirmala Sitharaman will be presenting the first budget of the Modi 3.0 government on July 23. The budget will focus on taxation, education, healthcare, infrastructure, and other sector. However, FM Sitharaman is most likely to have a special focus on Artificial Intelligence and Machine Learning because of the global buzz around this latest technological revolution.
The application of AI brings in 3-10x improvement in business processes. Therefore, it could significantly contribute to India's ambitious goal of making it a $5 trillion economy if used effectively. The Centre and the state have already implemented policies focusing on AI such as the Bhasini program, and YuvAI for skilling youth. Tamil Nadu, Karnataka, and Telangana have launched schemes around AI.
Deloitte India’s Debashish Banerjee, and Shrenik Shah, Partner have suggested some of the pre-budget expectations around the AI sector. They said that the government should boost investments in AI or encourage private investment via tax cuts and identify new research areas such as quantum computing in AI, digital nudge for social good using AI, Explainable AI (XAI), Gen Chem, and Computational Biology.
The government should focus on implementing AI technology in tax assessment, Deloitte India's partner added. "The use of AI by tax officials will help focus on non-compliant taxpayers, including early detection of non-compliance trends and taking preventive measures," the experts said. Besides, the Centre should reduce friction in integrating AI technologies with existing tax systems to enhance the performance of AI in tax compliance, relaying the correct information to taxpayers, etc, they said.
The experts also proposed a Public-Private Partnership (PPP) model for the implementation of AI in sectors such as education, agriculture, and healthcare. For instance, using lifestyle-based data to predict future health scores for the population to reduce the burden on healthcare and proactive mitigation.
To boost AI and analytics, they said that it should improve the trust of customers and organizations that their data is protected and secured. India must produce penalties for unethical use, helping it shape its image as a global AI hub, they added.
