French tax authorities have used AI software developed by Google and Capgemini to identify thousands of undeclared private swimming pools through aerial images and land registry databases. This initiative has resulted in bills totaling approximately €10m for the pool owners. The system, which was launched as an experiment in nine French departments, has successfully uncovered 20,356 pools and will be expanded nationwide. The tax authorities are considering using the software to detect other undeclared modifications to properties, such as annexes and extensions. Despite some limitations, the AI program is expected to generate €40m in new taxes on private pools in 2023.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| French tax authorities find undeclared swimming pools | Increased tax enforcement | More accurate AI software, increased tax revenue | Increase in tax revenue and property declaration compliance |
| AI software identifies pools on aerial images | Technological advancement | Improved accuracy and efficiency of AI systems | Enhancing tax enforcement and property declaration compliance |
| System may be extended to spot undeclared annexes | Expansion of AI application | Improved detection of undeclared property modifications | Enhancing tax enforcement and property declaration compliance |
| Software has a margin of error and needs improvement | Technological refinement | Increased accuracy and reduced margin of error | Enhancing tax enforcement and property declaration compliance |
| AI program to be rolled out nationwide for tax purposes | Nationwide implementation | Increased tax revenue from private pools | Enhancing tax enforcement and property declaration compliance |
| French environmentalists call for banning private pools | Environmental conservation | Restriction on recreational water use | Protecting vital water resources and addressing climate concerns |