From vision to impact: Advancing public finance transformation through AI and ecosystem collaboration

Over the past month, we’ve had the privilege of engaging with global leaders across public finance, customs, and trade at events hosted by the Australian Center for International Trade and Investment (ACITI) and the Organisation for Economic Co-operation and Development (OECD). This month, we’re contributing to a conference by the Intra-European Organisation of Tax Administrations (IOTA). These gatherings reinforce a shared commitment to building resilient, inclusive, and digitally empowered public services—and offer a powerful platform to show how Microsoft partners with governments to make that vision real.

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Three common themes emerged at these public finance, customs, and trade events.

1. AI is driving smarter, faster public sector services

AI is reshaping public finance, trade, and tax administration. At the 2025 International Trade and Trade Finance in the Digital Economy Conference, leaders explored how AI is driving productivity, resilience, and sustainable growth. With only 2–3% of global trade currently digitalized, the opportunity for efficiency gains is immense—a single electronic document can save billions in direct costs and create even more value in global trade.¹

AI-powered solutions are already delivering measurable results:

Frictionless borders and trusted trader onboarding
Empowered customs officers with real-time data and mobile tools
AI-based risk management for fraud detection and compliance
Sustainable logistics that reduce carbon footprints and improve efficiency

These capabilities are already in use—reducing goods clearance times by up to 30% and cutting document review durations by 90%.²

The General Directorate of Customs of the Dominican Republic (DGA) recently modernized its back-office and customer service operations using Microsoft intelligent cloud solutions, reducing some tasks from seven days to just 24 hours.
The Australian Trade and Investment Commission (Austrade) uses technology innovation to access the latest data, promote new markets, suggest targeted opportunities, and invite clients to events.
CSX uses AI and low-code automation to help customers track freight, manage shipments, and access rail logistics services through its online portal.

2. Building inclusive public services through collaboration

Transformation in public finance is a shared journey. The OECD Forum on Tax Administration’s Working Group on Tax Administration 3.0 highlighted the power of taxpayer ecosystem cooperation. Governments and industry partners are working together to build trusted, interoperable systems that allow:

Secure data collaboration across agencies and sectors
Quantum-safe digital identity and verifiable credentials
Privacy-preserving technology with confidential computing
Cybersecurity and access
Contextual intelligent automation with AI agents

This collaborative mindset is driving the next phase of digital transformation, ensuring that modernization efforts are resilient, inclusive, and aligned with the needs of all stakeholders.

3. Putting taxpayers first with data-powered services

The shift toward taxpayer-centric, data-driven services is another recurring theme. Agencies are using real-time insights, digital identity, and privacy-preserving technologies to deliver:

Personalized taxpayer experiences and simplified compliance.
Outcome-driven investments that improve service quality and transparency.
AI copilots that empower auditors, analysts, and citizens.

Examples abound: Estonia’s Bürokratt solution simplifies taxpayer experience with AI-powered natural language interactions, while the United Kingdom’s Department for Environment, Food, and Rural Affairs uses data-driven budgeting to enhance financial operations. In collaboration with the Inter-American Center of Tax Administrations (CIAT), Microsoft has helped build intelligence tools that detect anomalies and empower tax agencies to become more efficient.

What’s next for AI in public finance transformation

As we prepare for the 6th Annual International Conference on “Real-Time Economy Development and Tax Administrations,” the focus is on interoperability, data trust zones, and AI-powered tax ecosystems. Microsoft will be contributing to this dialogue and sharing how our technologies are using real-time data services, secure collaboration, and next-generation AI agents for public finance agencies.

Across all these engagements, one message is clear: the future of public service is collaborative, intelligent, and taxpayer-first. At Microsoft, we’re committed to enabling this transformation through technology, partnerships, and a deep understanding of government missions.