Finance experts are increasingly optimistic about Generative AI (GenAI)’s potential to revolutionise tax operations.
- A significant rise in approval for GenAI has been noted, with 87% of surveyed leaders endorsing its efficiency.
- Rising cost pressures are a new and dominant concern, resulting in strategic financial transformations.
- The talent gap in the tax sector is critical, prompting shifts in workforce development strategies.
- Tax functions must adapt quickly to new, complex technological and regulatory environments.
Finance professionals are showing a remarkable shift in perspective regarding the role of Generative AI (GenAI) in their operations. According to a recent survey, the endorsement of GenAI’s efficiency in driving tax operations has soared to 87%, a notable increase from 15% last year.
The survey, which collected insights from 1,600 CFOs and tax professionals worldwide, underscores the urgency for transformative changes within tax and finance functions. Mounting cost pressures have emerged as the leading concern for the first time in six years, compelling leaders to reassess financial strategies.
These financial challenges have led nearly half of the respondents to prioritise effective budget management. Furthermore, 86% of them are actively seeking ways to cut costs, highlighting the impact of external economic conditions on their operations.
Despite high approval for GenAI, only 75% of financial leaders feel they are in the preliminary stages of its integration. This slow adoption contrasts with the pressing need to handle increasingly complex tax responsibilities, including real-time digital tax filings and e-invoicing mandates in numerous countries.
The necessity to comply with global tax initiatives such as the OECD’s BEPS 2.0 is also accelerating the shift. A significant 42% of organisations expect to amend their reporting processes significantly, while 82% acknowledge the need for considerable data sourcing adjustments.
Additionally, the looming talent gap represents another critical challenge. As the profession faces retirements and a shortage of new entrants, 70% of leaders report significant difficulties. Over half of them struggle with retention and recruitment, recognising that employees without traditional degrees are becoming valuable assets.
Despite these challenges, more than half of the respondents believe that GenAI will not diminish the workforce within tax functions. Instead, they envision a reallocation of resources towards strategic, higher-value tasks. Marna Ricker, an industry leader, highlighted how GenAI empowers professionals to focus on impactful decision-making and innovation, thereby “unlocking value for their organisations.”
As the survey indicates, adapting to GenAI and addressing both cost and talent challenges are crucial for future-proofing tax functions.
