Greece's Digital Revolution: How Big Data, AI, and Drones Are Transforming Its Tax Landscape

Greece, long challenged by tax evasion and an inefficient financial sector, is embarking on an ambitious digital overhaul, leveraging cutting-edge technologies like big data, artificial intelligence, and drones. This transformative initiative, partially funded by the European Union's Recovery and Resilience Facility, aims to modernize its tax administration, combat illicit financial activities, and ultimately enhance public revenue.

At the heart of this modernization is the Independent Authority for Public Revenue (AADE), which is spearheading the integration of advanced analytics and automated systems.

Traditional methods of tax collection are being replaced by sophisticated algorithms that can detect anomalies and patterns indicative of tax evasion. For instance, comparing income declarations with bank transactions, social media activity, and even lifestyle indicators allows authorities to build a more comprehensive financial profile of individuals and businesses.

Big data plays a pivotal role.

The AADE is consolidating vast amounts of information from various sources—banks, public registries, digital payment platforms, and even international financial data exchanges. This immense data pool is then analyzed by AI-powered systems to identify discrepancies, uncover undeclared income, and pinpoint high-risk taxpayers for audit.

The goal is to move from a reactive, audit-based approach to a proactive, data-driven prevention model.

Drones are also being deployed in innovative ways, particularly in sectors prone to undeclared construction or land-use violations. Thermal imaging and high-resolution cameras on drones can detect unpermitted swimming pools, extensions, or commercial operations, providing irrefutable evidence for tax authorities.

This aerial surveillance capability adds a new dimension to compliance enforcement, making it harder for individuals and businesses to operate outside the tax framework.

Machine learning algorithms are being trained on historical data to predict evasion patterns and identify emerging risks. This predictive power allows the AADE to allocate its resources more effectively, targeting inspections and audits where they are most likely to yield results.

Furthermore, the digitalization effort extends to improving taxpayer services, making compliance easier and more transparent for law-abiding citizens and businesses, thereby fostering a culture of trust.

The impact of these technological interventions is expected to be substantial. By streamlining processes, reducing bureaucratic hurdles, and significantly increasing the detection rate of tax fraud, Greece anticipates a marked improvement in its fiscal health.

This digital renaissance represents a critical step towards building a more resilient, equitable, and transparent financial system, setting a precedent for how nations can harness technology to tackle long-standing economic challenges.