How finance leaders are reimagining tax through AI

Discover how organizations use AI to transform tax functions while managing risk. Unlock insights to drive efficiency, scale impact and maximize ROI.

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This podcast explores how organizations are moving beyond traditional compliance roles to become more strategic, insight-driven partners to the business, driving tax transformation through digital tax transformation initiatives.

A practical approach to transformation is highlighted, beginning with small, focused initiatives. By identifying repetitive, rule-based and compliance-heavy processes, organizations can unlock quick wins and build momentum toward tax automation. Key areas such as tax return automation, reconciliation, classification challenges, and data analytics demonstrate tax technology solutions and intelligent automation in tax streamlining operations. They are also improving accuracy and visibility, supporting digital finance operations and improving tax efficiency using AI.

The conversation addresses the critical challenge of moving AI initiatives from pilot stages to full-scale deployment, a key aspect of AI implementation in finance. A phased approach and testing use cases before integrating them into core systems helps mitigate risks and enables smoother adoption, especially when exploring AI use cases in corporate tax and automating tax compliance with AI.

Importantly, AI is positioned as an enabler that supports human decision-making rather than replacing it. Human oversight remains vital to validate outputs, manage exceptions and maintain control, particularly in areas such as tax risk management and AI-driven compliance.

The discussion further expands on redefining ROI in transformation efforts. Beyond cost savings, success is measured through improved risk management, enhanced efficiency, scalability, and the development of team capabilities, enabling scalable tax operations and stronger tax efficiency solutions aligned with a broader finance AI strategy.

Key takeaways

Finance can move from a compliance function to a true business partner when supported by the right digital backbone.
The biggest value unlock in tax functions lies in eliminating manual data movement and duplication across systems .
Early validation of AI outputs builds trust and accelerates long-term automation adoption, supporting AI implementation in finance, and improving AI-driven compliance and tax risk management.
Standardizing tax processes is a prerequisite to scaling any AI or digital solution effectively.

It is clear that the pace of change in tax is redefining value, risk, and leadership. Transformation is as much about mindset as it is about technology.

Manoj Rathi

Partner, Tax, EY India

Going forward, with AI, technology and new-age things, finance will become a lead indicator for the business. That is how I see the entire technology roadmap changing for finance.

Raju Gupta

Group Vice President, Corporate Finance, Tata AutoComp Systems Limited

Host

Manoj Rathi, Partner, Tax, EY India

Manoj Rathi
Partner, Tax, EY India

Speaker

Raju Gupta, Group Vice President, Corporate Finance, Tata AutoComp Systems Limited

Raju Gupta
Group Vice President, Corporate Finance, Tata AutoComp Systems Limited

For your convenience, a full text transcript of this podcast is available on the link below:

Manoj Rathi

We are not just living in extraordinary times. We are living in times where the pace of change itself is extraordinary. Finance and tax functions in every organization sit right at the center of this change. The real question for tax leaders today is: can you keep up with the pace of this change without increasing risk, without losing control, and more importantly, without constantly adding to your headcount? Some leaders are reflecting on this moment with the thoughtful adoption of technology and AI, not just to automate work, but to completely reimagine how these functions deliver value. We have one such versatile leader with us today to share insights on how he is looking at the transformation opportunity through these dynamic times. I am Manoj Rathi, Partner, Tax with EY India, and I am delighted to be joined by Raju Gupta, Group Vice President, Corporate Finance, Tata AutoComp Systems Limited. Welcome, Raju. It is great to have you.

Raju Gupta

Hi Manoj, thanks for having me here.

Manoj Rathi

So, Raju, you have been spearheading transformation in finance and tax in your organization. Why don't we start with having your point of view on how do you see technology and AI shaping finance and tax function?

Raju Gupta

Finance has always been looked upon as a gatekeeper—compliance, reporting and those aspects. This entire transformation with AI and new technology will become the baseline for finance to lead from the front, to be a business partner. Going forward, with AI, technology and new-age things, finance will become a lead indicator for the business. That is how I see the entire technology roadmap changing for finance.

Manoj Rathi

Our viewers would be interested in knowing how did you go about transformation in tax function, more specifically in terms of which were the processes that you identified and how did you go about prioritizing them?

Raju Gupta

Start small and have some wins because that helps the team to accommodate it. The very basic aspect is to look at processes which are repetitive, compliance-driven, and where most of the information is currently available. Once you see these processes, you will find repetitive activities being done such as extracting data from SAP, putting into templates, churning that data, doing analytics, validating that, and then filing. Secondly, look at where maximum bandwidth of people is getting consumed. For example, in direct taxes, let us take TDS as a subject. It starts from identifying the tax rate, deducting tax, filing monthly returns, analyzing tax payable, filing corporate tax, quarterly and annual returns, Form 3CD—all these consume nearly 40%–50% of a resource’s time. Identify tasks which are rule-based, because technology works best there. These are the baseline areas for identification of activities to take them forward for transformation.

Manoj Rathi

Looking at that framework, which processes did you look at and how did you go about that piece?

Raju Gupta

The journey is ongoing. We looked at various solutions, including some EY tools. We focused on corporate tax return filing, 26AS reconciliation, and EXIM areas where HSN classifications were a challenge due to large volumes. Even a small error could lead to tax shortfall. We also analyzed FTAs and imports. Analytics play a key role—these tools help not only in doing work but also analyzing it, which traditional teams may struggle with.

Manoj Rathi

With your approach of identifying quick wins such as corporate tax returns, 26AS, TDS, HSN, FTA—it seems like a well-rounded strategy.

Raju Gupta

Yes, the idea is to address every aspect of tax as a function, it could be advance tax, transfer pricing and drafting litigation. Identify opportunities and implement solutions across each area.

Manoj Rathi

Let us pivot to AI. There is a debate that many AI use cases do not move beyond Proof of Concept (PoC). How do you see AI in tax?

Raju Gupta

If you identify the right use case, moving from PoC to production is not challenging. First, test offline before integrating with systems like SAP. Take a step approach so you understand the bottlenecks. Ensure that the technology and service provider are aligned. Spend time choosing the right partner who brings both domain and tech expertise. For example, some tools are promising because they incorporate Indian tax specifics.

AI must be treated carefully. If not trained properly, outputs may not be usable, requiring human intervention. The real world will be AI with human intervention.

Manoj Rathi

So, AI should be a copilot, not an autopilot?

Raju Gupta

Exactly. When we implemented DigiCorporate Tax, we initially validated outputs manually, checked gaps, fixed them, and then scaled. Over time, it became reliable. You must balance automation with human control.

Manoj Rathi

For transformation success, defining ROI is critical. How do you measure it?

Raju Gupta

We need to redefine ROI. It includes risk management, efficiency improvements, scalability, cost savings, and importantly, people development. Are you enhancing skills and enabling people to take on larger roles? That is key.

Manoj Rathi

How did your team react to introducing conventional technology into tax functions and now AI?

Raju Gupta

The response was positive. There was no pushback because they understood that repetitive tasks do not add value. They were excited about the transformation. It gave them a sense of growth that a part of their work would now be handled through tools, allowing them to focus on higher-value activities.

Manoj Rathi

As we wrap up, it is clear that the pace of change in tax is redefining value, risk, and leadership. Transformation is as much about mindset as it is about technology. Thank you, Raju, for your insights on embedding technology while keeping the human element central.

Raju Gupta

Thank you for having me.

Manoj Rathi

To our listeners, if you found this conversation helpful, please share it with your network and stay tuned for more discussions on innovation, leadership, and the future of work. Until next time, keep challenging the status quo and reimagining what is possible. Thank you.

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Podcast

Episode 04

Duration

16m 59s

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