USA based Benjamin Alarie, co-founder and CEO of Blue J Legal, discusses the expanding role of artificial intelligence in tax with contributing editor at Tax Notes Federal Benjamin Willis.
When we talk about machine learning and artificial intelligence of the law, what we’re doing is talking about collecting the raw materials, the rulings, the cases, the legislation, the regs, all that information, and bringing it to bear on a particular problem. We’re synthesizing all of those materials to make a prediction about how a new situation would likely be decided by the courts.
. . . Law should be predictable. We have lots of data out there in the form of rulings, in the form of judgments that we can collect as good examples of how the courts have decided these matters in the past. And we can reverse engineer using machine learning methods how the courts are mapping the facts of different situations into outcomes. And we can do this in a really elegant way that leads to high quality prediction. So predictions of 90 percent or better accuracy about how the courts are going to make those decisions in the future, which is incredibly valuable to taxpayers to tax administration and to anyone who’s looking for certainty, predictability and fairness, in the application of law.