There's something quietly revolutionary happening in the space between our kitchen counters and our calendars. Last week, Amazon launched Alexa.com - bringing their AI assistant to web browsers - and while the tech press buzzed about "cross-device integration" and "unified interfaces," I found myself thinking about something else entirely: What happens when AI stops being a novelty and starts being a utility?
I've been spending considerable time at DOMS thinking about
AI in taxation - pattern recognition in transfer pricing, compliance
automation, the architecture of systems that could shift us from adversarial
enforcement to collaborative partnership. But this Amazon announcement landed
differently for me. Not because it's revolutionary technology (it isn't), but
because it reveals something about where we are in the maturation of AI as
infrastructure.
And that matters for anyone working in public service,
policy, or governance.
The Invisible Infrastructure Question
Here's what caught my attention: Amazon's new platform
doesn't just connect your voice commands across devices. It coordinates your
Bosch coffee machine with your calendar, manages grocery shopping across Amazon
Fresh and Whole Foods, and adjusts your smart home settings - all without you
actively managing the connections. The company claims busy professionals are
reclaiming 3-5 hours per week previously lost to managing household operations.
Three to five hours. Per week.
Now, set aside whether you trust Amazon with that level of
household visibility (a legitimate concern). The underlying pattern is what
interests me: AI becoming genuinely useful when it reduces coordination costs
rather than just automating individual tasks.
This isn't about making one thing faster. It's about
eliminating the cognitive overhead of connecting multiple things.
And that's precisely the conversation we're not having
enough in public finance and governance.
What Taxpayers Actually Need (Hint: It's Not Just Faster
Processing)
Working on the Taxpayers' Charter revision and the
implementation guidance for India's new Income Tax Act 2025, I keep returning
to a fundamental question: What if we're optimizing for the wrong thing?
Most AI applications in taxation focus on institutional
efficiency - faster processing, better fraud detection, automated compliance
checks. All important. All necessary. But they're solving the government's
problem, not necessarily the taxpayer's problem.
The taxpayer's problem isn't usually that their return takes
three weeks instead of two to process. Their problem is understanding which of
seven different deduction categories applies to their situation, remembering
whether they need Form 10E or Form 10BA, coordinating information across
multiple financial institutions, and doing all of this while holding down a job
and managing a household.
The taxpayer's problem, in other words, is coordination
cost.
What would it look like if we designed AI systems in
taxation the way Amazon designed this household coordination platform? Not to
make our processes faster, but to eliminate the cognitive overhead citizens
face in navigating our systems?
The Power Dynamic Embedded in Design
Consider the difference between these two approaches:
Approach A: AI-powered system that automatically
flags discrepancies in your return and sends you a notice demanding
clarification within 30 days.
Approach B: AI-powered system that, while you're
preparing your return, proactively identifies potential issues, explains why
they might be flagged, suggests documentation you should gather, and walks you
through the reasoning - before you even file.
Both use the same underlying technology. Both might even
result in the same compliance outcome. But only one treats the taxpayer as a
partner in the process rather than a subject of it.
This is what I mean when I talk about shifting from
adversarial models to collaborative ones. It's not about being "nice"
to taxpayers. It's about recognizing that better compliance outcomes emerge
when citizens understand and trust the system - and when the system genuinely
serves their need to comply, not just the government's need to enforce.
When Privacy Architecture Becomes Democratic Architecture
The Amazon launch also surfaced something uncomfortable: the
company stores conversation history and personalization settings across all
your devices. Convenient? Absolutely. Concerning? Also absolutely.
But here's what struck me: In consumer AI, we've largely
accepted this trade-off. We surrender privacy for convenience, and we do it
consciously (if not always thoughtfully). We know Google reads our email to
make search better. We know Amazon tracks our purchases to refine
recommendations. We've normalized surveillance capitalism as the price of
utility.
In public service AI, we cannot make that trade.
The privacy architecture of government AI systems isn't just
a technical consideration - it's a democratic one. When the Income Tax
Department deploys AI for transfer pricing analysis or compliance monitoring,
the question isn't just "Does this protect data?" but "Does this
preserve the proper relationship between citizen and state?"
This is why I'm increasingly convinced that equity
considerations and privacy protections in AI aren't add-ons to be addressed
after we build the systems. They're foundational design constraints that should
shape what we build in the first place.
And honestly? I think we're still figuring this out. The new
Income Tax Act 2025 reduces complexity from 800+ sections to around 500 and
emphasizes plain language compliance. That's movement in the right direction.
But compliance simplification and AI-enabled assistance need to evolve
together, not sequentially.
The Coordination Challenge That Actually Matters
Here's where this connects to the broader work we're doing
at DOMS with the CBDT leadership: The real coordination challenge in taxation
isn't technical. It's institutional.
We have multiple departments, multiple systems, multiple
data sources, multiple compliance touchpoints. From a taxpayer's perspective,
this creates exactly the kind of coordination overhead that Amazon's new
platform claims to solve for household management - except with much higher
stakes and far less user-friendly interfaces.
The question isn't whether AI can help with this
coordination. It obviously can. The question is whether we're willing to
redesign our institutional architecture to let it.
Because here's the uncomfortable truth: Truly effective AI
in public service requires dismantling some of the silos and turf protections
that currently define how government works. It requires data sharing across
departments. It requires common standards and interoperable systems. It
requires trusting that better citizen outcomes serve everyone's institutional
interests.
That's not a technology problem. That's a governance
problem.
And it's one that decades of e-governance initiatives have
repeatedly confronted - often unsuccessfully - because we've treated it as a
technology problem.
What I'm Carrying Forward
As I work on implementation guidance for the new Act and
continue the Charter revision, I find myself returning to a simple test: Does
this make it easier for a taxpayer to understand what they need to do and why?
Not "Does this make our process more efficient?"
Not "Does this reduce our processing time?"
But: Does this reduce the coordination cost for the citizen
trying to comply?
If we're honest, most of our current systems - even the
digitized ones - fail that test. We've automated complexity, not eliminated it.
We've made our processes faster without making them more navigable.
The Amazon announcement is a reminder that the technology
exists to do better. What we need now is the institutional courage to design
differently.
A Final Thought
I don't know if Amazon's vision of AI-coordinated household
management will actually deliver on its promise of reclaiming hours per week.
The history of productivity technology is littered with overpromises.
But I do know this: The future of AI in public service won't
be determined by what the technology can do. It'll be determined by who we
design it to serve - and whether we have the imagination to prioritize citizen
empowerment over institutional efficiency.
That's the conversation I want to be having. Not just within
DOMS or CBDT, but across government, across policy communities, across anyone
grappling with how we make public institutions work for the people they're
meant to serve.
What AI applications in governance have actually made your
life easier as a citizen - not just as a policy professional or administrator,
but as someone navigating systems from the outside? I'm genuinely curious
what's working out there.
Because the best ideas for collaborative systems rarely come
from inside the institutions alone.
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