Reinforcement learning in the field of tax law

J. Molenaar & Y. Kaya

June 24, 2019

Artificial intelligence has entered our lives and fundamentally changed them. Moreover, research in AI still shows continuous improvements and more capabilities every day. A recent example of AI's accomplishments was Google’s DeepMind, which was able to learn by itself how to walk through the use of Reinforcement Learning. Until now, the current literature has primarily focused on making sure the AI-agents will be able to technically become a part of the community and making sure no humans are harmed along the way. AI-agents however, would have to deal with other 'laws' as well, such as contract law and tax law. Therefore, In this paper, we'll look at the current state of technology to explore whether an AI-agent can learn how to obey tax legislation based on the reinforcement learning method. In order to draw conclusions, we'll discuss in great detail the characteristics and conditions of reinforcement learning, use cases thus far and present a model for a TAX-AI agent based on Reinforcement Learning.