Assignment 4 Semester 1 2025
Unique Number: 825074
Due date: 15 May 2025
2 ANSWERS PROVIDED
LEVERAGING AI IN THE SOUTH AFRICAN REVENUE SERVICE (SARS) FOR
IMPROVED SERVICE DELIVERY
Introduction
The South African Revenue Service (SARS) is a vital government agency responsible for tax
collection and enforcement. It plays a crucial role in funding public services, ensuring
compliance, and maintaining economic stability. In recent years, SARS has embarked on a
digital transformation journey, adopting cutting-edge technologies to modernize its
operations and improve public service delivery. One of the standout technologies adopted
by SARS is Artificial Intelligence (AI), which has revolutionized how the agency manages
data, interacts with taxpayers, and enhances compliance. This discussion explores SARS’s
use of AI, its benefits, applications, and the potential for further technological advancement
in digital governance.
The Emerging Technology at SARS
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2 ANSWERS PROVIDED
LEVERAGING AI IN THE SOUTH AFRICAN REVENUE SERVICE (SARS) FOR
IMPROVED SERVICE DELIVERY
Introduction
The South African Revenue Service (SARS) is a vital government agency
responsible for tax collection and enforcement. It plays a crucial role in funding public
services, ensuring compliance, and maintaining economic stability. In recent years,
SARS has embarked on a digital transformation journey, adopting cutting-edge
technologies to modernize its operations and improve public service delivery. One of
the standout technologies adopted by SARS is Artificial Intelligence (AI), which has
revolutionized how the agency manages data, interacts with taxpayers, and
enhances compliance. This discussion explores SARS’s use of AI, its benefits,
applications, and the potential for further technological advancement in digital
governance.
The Emerging Technology at SARS
SARS has integrated Artificial Intelligence (AI) into its digital strategy, primarily using
AI-powered automation and machine learning for risk analysis and customer service.
AI refers to computer systems capable of simulating human intelligence processes
such as learning, problem-solving, and decision-making. At SARS, AI algorithms
analyze large volumes of taxpayer data to detect irregularities, predict non-
compliance, and provide efficient customer service via automated chat interfaces. AI
functions through data input, training via machine learning models, and output
generation that aids decision-making or automates tasks.
Key Functions and Applications
One of the key applications of AI at SARS is in automated risk profiling and fraud
detection. Machine learning algorithms analyze taxpayer records, transaction
histories, and submission patterns to identify anomalies that indicate tax evasion or
underreporting. This reduces manual workload and enhances audit accuracy.