Economy

Kazakhstan to deploy AI to track down businessmen’s shadow income

Kazakhstan turns to AI to expose undeclared business income / Image generated by a neural network, photo editor: Dastan Shanay

Kazakhstan’s government plans to reduce the shadow economy to 13.8% of GDP by 2028. To identify businesses operating outside the formal economy, the country is launching an AI-powered digital monitoring platform.

The platform will combine data from government agencies to identify and help prevent risks associated with the shadow economy before they result in losses to the state budget.

«The comprehensive plan includes 53 measures aimed at increasing economic transparency and digitalizing sectors where the risks of the shadow economy are highest,» the government said.

High-risk sectors

The sectors identified as particularly vulnerable to shadow-economy risks include trade, construction, transportation, agriculture, health care and education.

The plan also calls for expanding the list of goods subject to mandatory digital labeling and expanding the National Product Catalog.

Digital oversight of social services

Changes will also affect the social sector. Kazakhstan plans to introduce digital tools to monitor the quality of services, prices and the efficient use of budget funds.

At the same time, the cabinet emphasized that the comprehensive plan will not increase the administrative burden on businesses.