“AI-Driven Human Resource Systems and Their Impact on Tax Structuring, GST Automation, and Regulatory Compliance in Organizations”

Abstract

This study investigates the causal impact of Artificial Intelligence–driven Human Resource (AI-HR) systems on corporate tax structuring efficiency, GST automation accuracy, and regulatory compliance outcomes. Using a balanced panel of 420 firms observed from 2016–2024, we implement a Difference-in-Differences (DiD) framework comparing early AI adopters with non-adopting firms. Results indicate that AI-HR adoption reduces GST filing error rates by 18–24%, lowers compliance penalties by 21%, and improves effective tax planning efficiency by 12% relative to control firms. Event-study estimations confirm no pre-trend differences and reveal statistically significant post-adoption effects within two years. Robustness tests using alternative compliance proxies and placebo reforms validate causal inference. The findings demonstrate that AI-integrated HR systems function as internal governance enhancers, reducing regulatory friction and strengthening fiscal transparency.