How leaders are rethinking tax: AI-driven transformation

At a recent EY roundtable, tax leaders shared how they are using AI to unlock strategic value across the tax function.

In brief

• Tax leaders are using AI to strengthen data, automate compliance and elevate tax as a strategic business partner.
• Successful AI adoption pairs strong foundations with human judgment and a culture focused on progress over perfection.

Pioneering an AI-first mindset

True transformation requires more than technology; it demands a fundamental shift in mindset. The leaders driving this change relentlessly pursue progress. Through hands-on workshops and collaborative projects, they have fostered a culture of practical innovation within their teams.

By integrating advanced AI and data platforms, these organizations have automated routine tax processes, enabling professionals to focus on higher-value work. This strategic use of AI positions the tax function as a vital partner within their organizations.

Balancing automation with human ingenuity

Despite the allure of full automation, these leaders understand that the future of tax is not touchless; it’s strategic.

Human oversight remains essential for quality control and checks and balances; it’s just much more targeted and efficient. Roundtable participants highlighted the need for a dynamic process that adapts to technological advances while preserving the rigor and judgment that only experienced professionals can provide.

Leading through uncertainty

Early adopters agreed that AI transformation takes significant time and effort — particularly in clarifying the vision, articulating the why and initiating change management amid uncertainty. They highlighted the need for broad stakeholder engagement, patience and consistency.

Their shared message was clear: Prioritize progress over perfection. While AI solutions may not be perfect, when used correctly, they are better and faster than previous methods. By encouraging teams to embrace imperfection and pursue continuous improvement, these leaders are cultivating a new generation of tax professionals who see themselves as innovators and strategic leaders.

Considerations for innovating your tax function

Assess data quality. How confident are you in the quality and integrity of the data within your tax function, and where might gaps point to an opportunity to utilize AI?

Embrace an AI-first mindset. How can you create new opportunities for your team to explore and experiment with AI?

Engage stakeholders. How actively are you engaging stakeholders across your organization to build alignment and support for AI initiatives, and where could deeper collaboration accelerate progress?