Türkiye Harnesses AI to Combat Corporate Tax Evasion and Enhance Digital Governance
Türkiye plans to use artificial intelligence (AI) to combat corporate tax evasion. Recent investigations found nearly US$700 million underreported by large companies. This reflects the government’s growing reliance on AI.
Since launching its national AI strategy in 2021, Türkiye has implemented AI across various ministries, including healthcare, defense, finance, and social protection. Yusuf Tancan, head of the Digital Transformation Office (DTO), notes that AI aims to enhance public service delivery and efficiency.
The government’s Public Sector Data Space (PSDS) initiative supports the use of AI by creating a secure environment for data exchange between public institutions and private users. This initiative, inspired by the European Union’s data spaces model, helps develop AI and big data applications for public benefit.
Out of the 122 projects in the national AI strategy, 34 have been finished, and 40 are on track. The DTO and the Turkish Statistical Institute work together to manage data protocols for AI projects. They conduct quarterly reviews to assess public feedback and adjust performance indicators as needed.
Recently, Türkiye released a short-term action plan focusing on immediate steps to improve AI implementation. This plan, which is not a new strategy but a refinement of prior efforts, includes 26 actions such as nurturing young AI talent and developing a Turkish large language model.
How does Türkiye ensure ethical and responsible use of AI in its digital transformation initiatives?
Interview with Yusuf Tancan, Head of Türkiye’s Digital Transformation Office
News Directory 3: Thank you for joining us today, Mr. Tancan. Türkiye’s recent move to utilize artificial intelligence (AI) in combating corporate tax evasion has sparked great interest. Can you explain the motivations behind this initiative?
Yusuf Tancan: Thank you for having me. The motivation behind our initiative to leverage AI in tackling corporate tax evasion stems from evidence that almost $700 million in tax was underreported by large companies. This significant shortfall underscores the need for more sophisticated tools to enhance tax compliance. AI provides us with the capability to analyze vast datasets to identify anomalies, improve oversight, and ultimately ensure that everyone pays their fair share.
News Directory 3: Since the launch of Türkiye’s national AI strategy in 2021, various ministries have been implementing AI. How has this strategy evolved?
Yusuf Tancan: Since the inception of our national AI strategy, we’ve seen meaningful integration across various sectors such as healthcare, defense, finance, and social protection. Our aim has always been to enhance public service delivery and operational efficiency. Out of 122 projects outlined in the strategy, 34 have been completed, while 40 are currently on track. Each initiative is carefully evaluated through quarterly reviews to incorporate public feedback and adjust performance indicators accordingly.
News Directory 3: Can you elaborate on the Public Sector Data Space (PSDS) initiative and its role in this transition?
Yusuf Tancan: The PSDS initiative is crucial for creating a secure data exchange environment between public institutions and private entities. Inspired by the EU’s data space model, it facilitates the development of AI and big data applications for public benefit. This initiative allows us to share critical information safely, ensuring that AI projects are built on reliable and comprehensive data, thus optimizing their effectiveness.
News Directory 3: You mentioned a recent short-term action plan with 26 actions focused on immediate AI implementation improvements. What are some highlights of this plan?
Yusuf Tancan: Exactly. While this plan doesn’t constitute a new strategy, it provides clarity and refinement to our ongoing initiatives. Key actions include nurturing young AI talent, which is vital for future innovation, as well as developing a Turkish large language model to enhance our capabilities in NLP and communication. We believe these steps will bolster our national competitiveness in AI technology.
News Directory 3: Ethical AI is becoming increasingly important globally. How does Türkiye intend to promote responsible AI use?
Yusuf Tancan: Promoting responsible AI is a top priority for us. Our policies are designed to align with the EU’s AI Act to ensure ethical implementation. We’ve introduced an AI circular that sets standards for transparency, accountability, and fairness in our AI deployments. These principles are critical in fostering public trust and ensuring that our citizens feel secure in the digital space.
News Directory 3: Cybersecurity is another challenge. How does Türkiye plan to strengthen its cybersecurity framework in relation to AI?
Yusuf Tancan: We are actively addressing cybersecurity concerns in cooperation with the EU’s NIS 2 Directive, which aims to protect data privacy and critical infrastructure. As we progress, we’re also exploring blockchain technology for its potential to enhance transparency and data integrity, which will complement our AI efforts and fortify our cybersecurity measures.
News Directory 3: what would you say is Türkiye’s vision for digital governance in the future?
Yusuf Tancan: Türkiye aims to establish a global benchmark in digital governance that encapsulates ethical data use, public engagement, and national development. By ensuring the responsible implementation of AI and digital technologies, we empower our citizens and lay the groundwork for a progressive, innovation-driven society. We believe that with the right approach, we can truly transform public service delivery for the better. Thank you for the opportunity to discuss these important initiatives.
Promoting responsible AI is a key goal for Türkiye. The DTO aims to align its AI policies with the EU’s AI Act to ensure ethical implementation. The agency has already introduced an AI circular outlining standards for transparency, accountability, and fairness.
The DTO is also addressing cybersecurity through the EU’s NIS 2 Directive. This framework will help protect data privacy and critical infrastructure. Additionally, the government is exploring blockchain technology to improve transparency and data integrity.
Tancan emphasizes the importance of ethical data use and public trust in digital transformation. Türkiye aims to set a global standard in digital governance that supports national development and empowers citizens.