The advent of digital technology is already having its weight in the way organisations run their tax departments. With that said, generative artificial intelligence poses opportunities to radically improve the way tax professionals work.
Traditionally, corporate tax departments relied heavily on manual and error-prone processes for tax administration and compliance, but the emergence of new regulations mandating tax digitisation is driving change in this area of business.
The nature of tax laws, which is ever-changing, is a continuous challenge for tax professionals in multinational corporations. Staying updated, managing administrative tasks, and controlling associated costs have been arduous tasks. Companies are now actively looking into technologies that can introduce greater automation into their tax compliance processes.
As organisations race to ensure their readiness for the digital mandates imposed by legislators, they turn to investments in technology within their tax departments, resulting in significant improvements in tax data collection and processing, better data accessibility, and the ability to provide real-time reporting.
Incorporating generative AI into corporate tax departments involve tax research, tax return filing, real-time data analysis, and predictive analytics for planning. The advancement also facilitates a forward-looking and predictive approach to tax, aligning with the increasing demand for real-time and transparent tax management, especially with new regulations like e-invoicing, which transforms tax from being predominantly reflective, to offering predictive capabilities.
The transformative value of generative AI in corporate tax departments include enhanced efficiency, time-saving, improved accuracy, and data-driven insights. Generative AI can also reshape careers in tax, making them more appealing and rewarding.