🐇 Earlier today, rabbit inc. released their AI-based device called “r1”. This is a device that enables users to make use of AI (in what they call “Large Action Model” (LAM) as opposed to “Large Language Model” (LLM)) to do things on their behalf. This includes ordering food, booking rides or trips, writing documents and producing images via Midjourney, OpenAI or other platforms. You can even teach r1 to do things for you as you yourself would do them (in “Teach Mode” you are able to walk RabbitOS through a task from start to finish, just so that later you are able to reference that lesson, ask r1 to follow those steps, and then it does as you command it). The full video of CEO Jesse Lyu describing r1 and RabbitOS is available here: https://lnkd.in/dmzvV3nP. As a disclaimer, this is not an endorsement of the product or the company referenced in the video.
LAM raises the important issue of AI being used to carry out day-to-day tasks following human commands. It is not outside the realm of possibilities for AI to carry out tasks associated with tax research, planning and compliance. It is also not impossible for AI to engage in tax litigation (having learned from available materials and jurisprudence and developing arguments to support either taxpayers’ or tax authorities’ claims). This is relevant for policymakers – including those in LatAm – because, by and large, local legislation does not have a regulatory landmark for the use and deployment of AI. The use of AI is also not captured in detail by tax treaties (and it is difficult to say whether existing treaty clauses can capture economic events either involving AI or conducted by AI).
If you are interested on the interplay between AI and taxation or tax practice, here are some articles recommended by the Latin American Tax Policy Forum (LATPF):
✅ “AI and the Future of In-House Tax Professionals”, by Lucas de Lima Carvalho and Anita do Vale Palmeira de Aquino, published on Tax Notes International. Available here: https://shorturl.at/fmIRY
✅ “The Marriage of Artificial Intelligence and Tax Law: Past, Present, and Future”, by Błażej Kuźniacki, available on SSRN: https://shorturl.at/mMWXY
✅ “Spiritus Ex Machina: Addressing the Unique BEPS Issues of Autonomous Artificial Intelligence by Using ‘Personality’ and ‘Residence'”, by Lucas de Lima Carvalho, published by Wolters Kluwer and available on SSRN here: https://shorturl.at/hmFJV
✅ “O uso da inteligência artificial pelas administrações tributárias”, by Fernanda de Holanda Paiva Nunes and Joedson Delgado, published by ABDT. Available here: https://shorturl.at/bdOVW (in Portuguese)
✅ “Inteligencia artificial: un mecanismo para frenar la evasión fiscal sin vulnerar los derechos del contribuyente”, by Margarita Palomino Guerrero, published by UNAM. Available here: https://shorturl.at/dprE9 (in Spanish) 🌍
