Officials in Telangana's Commercial Tax Department (CTD) have been unofficially utilizing artificial intelligence (AI) tools in their daily operations. This includes drafting discrepancy reports, notices, orders, and other official proceedings.
The department's personnel are also employing AI for analyzing, translating, and summarizing case records. This adoption aims to enhance the speed, consistency, and overall quality of their work.
Circular No 1/2026, issued by the department on August 18, welcomes the responsible adoption of AI tools. The circular seeks to balance the confidentiality of taxpayer information with obligations under the Digital Personal Data Protection Act, 2023.
However, the circular primarily focuses on what is not allowed rather than providing actionable guidelines for officials. This oversight could potentially delay the full integration of technology for improved efficiency.
A notable flaw in the circular is the shifting of legal, disciplinary, and criminal burdens onto individual field officers without establishing institutional infrastructure or budget allocations to support AI implementation.
Clearer guidelines and institutional support are needed to ensure the smooth and effective adoption of AI technology within the department for better operational efficiency.