Estonia's government faced a significant setback when a misphrased law led to a $28 million loss in gambling tax revenue. In December, the Riigikogu passed amendments to the Gambling Tax Act, mistakenly limiting the tax to 'skill games' while excluding remote gambling. This oversight, estimated to cost the government €24 million ($27.4 million) annually, was identified by a legal counsel for a gambling operator.
The situation escalated when Luukas Ilves, former undersecretary for digital transformation, utilized AI systems Claude and Gemini to analyze the legislation. Both systems quickly detected the error, prompting Ilves to develop a prototype tool named Apsakaleidja, or 'Fuckup Finder.' This tool can scan draft bills from the Riigikogu website and highlight inconsistencies, contradictions, and errors.
AI Tool Enhances Legislative Accuracy
The Apsakaleidja categorizes identified issues as high, medium, or low risk. Of the 112 bills currently listed, a staggering 102 are rated as high risk. For instance, the tool flagged contradictory wording in draft legislation, illustrating its potential to prevent future mistakes. Ilves showcased the tool on national television, revealing its capabilities to the public.
Estonia's Prime Minister, Kristen Michal, emphasized the revelation brought forth by this blunder, stating, "The situation demonstrated that AI can be an incredibly useful assistant." In response, the government has committed to incorporating AI tools like Apsakaleidja in the legislative process to proactively identify and rectify loopholes.
Strategic AI Integration in Governance
In January, Michal announced the Eesti.ai initiative aimed at enhancing AI literacy among Estonians, with a goal of doubling productivity by 2035. Notable advisors, including Markus Villig, founder of Bolt, are contributing to this effort. The government also introduced a bill allowing state and local agencies to utilize digital solutions, including AI, for administrative tasks.
