The Swedish Tax Agency?s Use of AI in Relation to the AI Regulation and GDPR

On 1 August 2024, the EU's new AI Regulation (AIF, EU 2024/1689) came into force. The AIF governs the use of artificial intelligence (AI) and outlines the safety measures required for different types of AI systems. How the AIF will affect the Swedish Tax Agency’s use of AI remains unclear due to the regulation’s complex structure and its interaction with the GDPR. The Swedish Tax Agency handles vast amounts of personal data and already employs AI technology to enhance its operations, particularly in profiling to detect inaccuracies in tax declarations.

The project aims to examine how the AIF influences the Swedish Tax Agency's use of AI tools, with a particular focus on AI-based profiling. A key part of the study is to identify which types of profiling are permitted under the AIF and the GDPR and how the Tax Agency can ensure its AI tools do not breach the prohibition against social scoring.

The central research questions are:

1. How does the AIF affect the Swedish Tax Agency's use of AI, particularly in relation to profiling?
2. What are the legal boundaries between permitted and prohibited profiling under the AIF and GDPR?
3. How can the Swedish Tax Agency ensure that AI tools for profiling do not violate the AIF’s prohibition on social scoring?

The project employs a legal research method to analyse the AIF, GDPR, and other relevant legislation. This analysis is complemented by empirical studies, such as interviews with key personnel within the Swedish Tax Agency and examinations of existing AI tools.

This project is funded by Åke Wiberg Foundation.