The latest EY Tax and Finance Operations Survey reveals that generative AI (GenAI) is set to transform tax and finance functions by addressing inefficiencies, talent shortages, and compliance with emerging regulations, including global minimum taxes. Nearly 87% of CFOs and tax leaders believe that GenAI will enhance efficiency and effectiveness, a significant increase from 15% in 2023. However, 75% of respondents indicate they are still in the early stages of integrating this technology into their operations. The survey, which gathered insights from 1,600 professionals across 32 jurisdictions, underscores the urgent need for transformation amid growing cost pressures and new tax regulations.
Cost concerns have emerged as the primary issue for tax and finance leaders, with 49% prioritizing budget management and 86% seeking cost-cutting measures. The survey highlights an urgent need for organizations to adapt to complex tax responsibilities, such as real-time digital filings and compliance with OECD guidelines like the Pillar Two minimum tax proposal. Additionally, a talent gap is exacerbating these challenges, with 70% of leaders reporting difficulties in attracting qualified professionals. Despite these pressures, more than half of respondents believe that GenAI will not reduce workforce numbers but will instead allow for a reallocation of employees to more strategic roles.
