The Behaviour of Interior Designers toward AI-Based Taxation and Its Impact on Sustainability in the Construction Sector: Evidence from an Emerging Economy

Abstract

The increasing integration of Artificial Intelligence (AI) in taxation systems is reshaping compliance behaviour and sustainability practices within the construction sector, particularly among design professionals. Yet, little research has examined the behavioural response of interior designers towards AI-based taxation systems and the impact of these responses on sustainability practices in emerging economies. The present research examines interior designers' behavioural responses to AI-based taxation systems and how it affects sustainability in the construction industry. This study used a quantitative approach, with a questionnaire survey of interior designers in an emerging economy's construction and design industry. Structural Equation Modelling (SEM) was used to analyse the data through SmartPLS software to examine the associations between constructs of AI adoption behaviour, perceived usefulness and perceived ease of use, tax compliance behaviour and sustainability orientation. The results demonstrate that AI adoption positively affects tax compliance behaviour among interior designers. In addition, perceived ease of use and perceived usefulness enhance the positive behavioural responses to AI-based taxation systems. The findings also suggest that enhanced tax compliance behaviour has a positive impact on sustainability in construction projects, such as effective resource management and eco-friendly design. The results confirm the importance of behavioural acceptance of AI-based taxation systems in achieving sustainable construction. Furthermore, the mediating effect of compliance behaviour indicates the need for user-friendly AI tax systems in developing economies. Overall, the study highlights the importance of increasing the perceived usefulness and ease of use of AI among interior designers to achieve better tax compliance and sustainability. Governments and regulators need to prioritise the development of transparent and easy-to-use digital tax systems for sustainable construction.