The quiet revolution in AI isn't just changing how we work and live. It's about to transform how wealth moves around the globe - and not necessarily for the better. As AI systems become autonomous, they threaten to supercharge tax avoidance strategies in ways that could devastate public finances worldwide. Consider a future where AI systems don't just identify tax loopholes, but actively exploit them in real-time, moving capital across jurisdictions faster than regulators can respond. This is the emerging reality of what technologists call "agentic AI" - systems capable of making independent financial decisions without direct human oversight. The implications are acute. Tax havens have traditionally relied on human financial experts laboriously analyzing regulations to find advantageous arrangements. These new AI systems can perform the same analysis continuously across multiple jurisdictions, identifying opportunities for tax arbitrage with unprecedented speed an...
In his farewell Presidential Address in 1961, outgoing US President Dwight Eisenhower then warned about the dangers of the military-industrial complex . He acknowledged the necessity of collaboration between the US government, the military, and industry for national development. But he cautioned that the alliance was vulnerable to abuse. Eisenhower further expressed his concern that the military-industrial complex could gain undue influence, ultimately surpassing the traditional powers of the State. Eisenhower’s warning has proven prescient. Over time, the military-industrial complex has evolved into a powerful force that, driven by profit motives, plays a significant role in perpetuating global conflicts and wars. Today, in this digital age, Eisenhower’s speech resonates once again , but with a modern twist — ushering in the rise of what I term the “digital industrial complex.” As we witness the increasing convergence of technology, industry, and government, especially in Afr...