Clear Sight
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Intended Use: Corporate/Finance
Technology Type: Problem-Solving/Cognitive
Runaway Type: Concentration of Power
Control Lever: Transparency and Accountability
Primary Setting: EU
By the late 2030s, corporate tax avoidance reaches historic levels. Multinational firms leverage AI-driven tax strategies faster than regulators can react. The rise of gig work, decentralized finance, and influencer-driven businesses leaves governments struggling to track the taxable income of individuals. An estimated €350 billion in tax revenue is lost annually in the EU alone, exacerbating wealth inequality and straining public services.
ClearSight
Facing mounting public pressure, the European Commission launches ClearSight: a tool AI forensic auditor designed to expose hidden wealth, close loopholes, and restore fiscal fairness. It is designed to have high explainability and transparency. Corporate lobbies and financial elites fight back, warning of “algorithmic surveillance.” But voters demand action, and ClearSight goes live.
Preemptive Policymaking
ClearSight combines machine learning, anomaly detection, and blockchain analytics to scan billions of financial transactions daily. It flags unusual filing patterns, inconsistent declarations across jurisdictions, and mismatches with publicly available data. Human auditors remain central to enforcement, using ClearSight’s insights to trigger investigations and propose legislative fixes to newly identified loopholes.
Turning the Tide
In just three years, corporate tax compliance rises by 28%, recovering €120 billion for public infrastructure and social programs. Fraud scandals erupt as multiple highly-valued startups and family offices are exposed for hoarding untaxed billions. Meanwhile, the ultra-wealthy deploy private tax AIs to stay one step ahead, weaponizing preemptive asset restructuring. Corporate tax havens like the Cayman Islands and Singapore also resist full AI integration, allowing some firms to continue shifting assets offshore.
Evasive Maneuvers
As AI audits expand, new black-market financial networks emerge. Underground economies turn to cash, crypto, and barter systems to evade automated tracking. Some gig workers deliberately underreport their income, believing that AI tax enforcement is disproportionately targeting digital freelancers while corporate giants game the system. Facing backlash, regulators adjust ClearSight’s scope, focusing AI enforcement on high-income tax evaders and making enforcement tools accessible to small businesses and freelancers.
A Fairer Future
Despite the opposition, ClearSight fundamentally reshapes global taxation. Its transparent architecture and audit trail systems earn international trust, helping to standardize enforcement across borders. Over time, cooperation grows into a universal AI tax framework that ensures corporations, digital laborers, and financial elites all contribute fairly. For the first time, tax policy is not shaped by those who benefit from its flaws, but enforced by a system built to protect the public good.
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