The signal
Governments and regulators are experimenting with machine-readable versions of tax rules, reporting requirements and benefits eligibility. It’s early, mostly in pilots and narrow areas.
Where it could lead
Compliance consumes huge amounts of time and money. Rules that software can apply directly could make businesses faster, reduce errors and change the work of lawyers, auditors and regulators.
Evidence that would strengthen the case
- A regulator publishes an official machine-readable rule that has legal standing
- Accounting and business software applies rules automatically
- Audits shift from sampling to continuous checks
What could prevent it
- Law proves too nuanced to reduce to code
- Legal systems won’t accept software interpretation as binding
- Errors in coded rules create large-scale compliance failures