GenAI Integration in Corporate Tax Departments: A Slow Yet Promising Evolution
The landscape of corporate tax is on the cusp of a significant transformation, with generative artificial intelligence (GenAI) at the forefront. Corporate tax professionals are recognizing the potential of GenAI to streamline and enhance tax operations. From automating data entry to aiding in tax planning decisions, the technology promises to revolutionize daily tasks within the industry.
Despite the optimism, the Thomson Reuters Institute’s 2024 Generative AI in Professional Services report highlights a cautious approach towards adoption. While 81% of corporate tax professionals acknowledge the applicability of GenAI to their work, only 5% report their organizations are currently integrating these tools. This figure contrasts with personal usage, where 25% of respondents are exploring public-facing GenAI tools like ChatGPT, and 38% plan to use tax-specific GenAI tools within three years.
Corporate tax professionals have identified several key use cases for GenAI, including:
- Accounting and bookkeeping
- Tax research
- Compliance
- Tax return preparation
- Document review and summarization
- Filling out financial statements
Yet, barriers to adoption persist. Technological hurdles such as data security and accuracy concerns are prominent, alongside cultural resistance and a lack of proper GenAI education within departments. Only 10% of corporate tax respondents indicated their organizations offer GenAI training, underscoring an urgent need for educational initiatives.
Furthermore, over half of the respondents worry about an overreliance on technology potentially diminishing critical thinking and creativity. This concern is compounded by a general aversion to change and a scarcity of skills necessary to implement GenAI effectively.
The report suggests that while GenAI’s integration into tax-specific tools may alleviate some concerns, a focus on people and processes is essential. Training and ongoing change management programs will be key to ensuring that GenAI is utilized effectively, with due consideration for privacy, security, and accuracy.
As corporate tax departments navigate this new technological era, the journey towards full GenAI integration appears to be more evolutionary than revolutionary. The promise of GenAI in enhancing efficiency and productivity is clear, but realizing its full potential hinges on overcoming the barriers to adoption and investing in the education of corporate tax professionals.
