Due Diligence and Applying AI Technologies

Over the past decade, rapid advances in artificial intelligence (AI) and due diligence have opened up new opportunities for productivity and economic growth in sectors ranging from agriculture to healthcare.

How to Apply New Possibilities with AI Technology?

AI can drive significant health and safety improvements by automating hazardous tasks. The use of AI in smart grids, smart cities, and connected devices can help reduce greenhouse gas emissions and promote climate change adaptation. Present a solution to minimize the risk of additional taxes, as well as penalties and fines to companies for non-compliance with due diligence by taxpayers when choosing a counterparty.

The use of AI digital rights management is not always allowed. Proponents of AI argue that free copying of intellectual property must be prevented, just as physical locks are needed to prevent the theft of personal property, which can help the copyright holder maintain artistic control, and uninterrupted streams of income. AI information protection tools are very important for protecting against viruses, yet they are not enough. It is also necessary to use specialized programs to protect against viruses.

Most examples of artificial intelligence you hear about today, from computers playing chess to self-driving cars, rely heavily on deep learning and natural language processing. Using these technologies, computers can be trained to perform specific tasks by processing large amounts of data and recognizing patterns in the data. To perform this assessment, business decisions must be made regarding the importance of the information.

Artificial Intelligence technologies are broadly referred to as software capable of performing tasks that traditionally require the use of human cognitive abilities – speech and visual recognition, analytical decision making, complex logical operations, predicting the future based on accumulated data, etc.

Due Diligence: What It Is, How and Why to Exercise It?

Due diligence is when a company or individual verifies its counterparties before entering into a deal with them. Due diligence must be exercised before signing a contract with a partner, supplier, or customer. Any taxpayer is at risk – he is not immune from the fact that the tax authorities during the audit will not find one-day firms among his counterparties. There is only one way to protect yourself – to be more careful in choosing counterparties and to exercise due diligence.

It is highly recommended for the company to apply due diligence because:

  • If the company does not exercise due diligence before concluding the contract, and then it turns out that the counterparty is dishonest, then organizations may refuse to deduct or exclude expenses on services rendered or work performed from the calculation of income tax or tax under a special regime.
  • If a company does not exercise due diligence, therefore, it receives an unreasonable tax benefit by working with unscrupulous counterparties. The legislation also does not contain information about who belongs to such counterparties. At the same time, the consequences of working with such counterparties can be serious, namely, additional taxes.

In addition, verification can also be carried out at the time of signing the closing documents. In this way, the company or entrepreneur will be able to once again confirm the fact that they have exercised due diligence on the transaction. For security purposes, performance value measures are expressed in terms of the impact on the organization’s business if the information is disclosed, the risk of information being lost, or the service is terminated.

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