North Rhine-Westphalia tax investigators adopt AI for data analysis

Tax investigators in North Rhine-Westphalia are implementing artificial intelligence to combat financial crime and tax fraud. During the inauguration of the new headquarters for the Landesamt zur Bekämpfung von Finanzkriminalität (LBF) in Düsseldorf, State Finance Minister Marcus Optendrenk emphasized that financial crimes increasingly leave digital footprints that require advanced tools for analysis.

The LBF, established in 2024, is Germany’s largest tax investigation authority, employing over 1,200 staff members. To manage massive datasets, the agency is collaborating with the Fraunhofer Institute IAIS on a research project to develop AI software. This tool is designed to operate within a protected environment without using external clouds.

Deputy Head of the agency, Michael Schneiderwind, noted that the AI tool allows investigators to “chat” with evidence, asking specific questions and searching for keywords or foreign-language texts to facilitate the sorting and evaluation of large volumes of data.