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Artificial intelligence (AI) and machine learning are revolutionizing the way governments tackle challenges such as tax evasion, transparency, and service efficiency.
The World Bank, through its GovTech Innovation Lab, is leading initiatives that apply these technologies to strengthen governance in various countries.
One of the most recent cases was developed in collaboration with Georgia’s tax administration, where the World Bank designed a system using synthetic data (artificially generated information that simulates real behaviors) to train machine learning models.
These models were later refined with anonymized data, resulting in a tax audit algorithm capable of identifying potential tax evaders with 63% accuracy—outperforming traditional manual methods.
The potential of this technology extends beyond tax enforcement.
Another key advancement has been the creation of an AI-powered conversational tool that allows development professionals to quickly access technical and financial information on past projects.
This solution, developed in partnership with the ITS Technology and Innovation Lab, streamlines the design of new initiatives by providing centralized data on costs, hired experts, working hours, and previous outcomes—all within an interactive conversational interface.
These innovations serve a clear purpose: strengthening governance and institutional capacity through concrete digital solutions.
AI does not replace officials but complements their capabilities, enabling more informed, efficient, and evidence-based decision-making.
From the World Bank’s perspective, adopting these technologies must go hand in hand with strong ethics, data protection, and workforce training, especially in developing countries.
Only through these measures can a more resilient, adaptable public sector be built—one that meets the demands of the 21st century.
In the countries where fiscal and public administration challenges remain urgent, these solutions represent a strategic opportunity to enhance transparency, reduce corruption, and improve the efficiency of public spending.
The path toward smarter governance has already begun.
