Generative AI will have a significant impact on tax, corporate and compliance professionals according to the Thomson Reuters’ Future of Professionals Report – Asia & Emerging Markets Edition.
The survey of 1,000 corporate, tax, legal and compliance professionals found that 64% believe generative AI will have a ‘transformational’ or ‘high impact’ on their profession in the next five years. This article takes a closer look at the corporate, tax and compliance professionals who participated in the research.
Generative AI (also known as ‘genAI’) continues to be a significant macroeconomic trend, shaping the future of work. Tax, compliance and other corporate professionals surveyed predict operations, client service, business growth and security are significant priorities.
For example, three in five professionals (60%) employed at tax/accounting firms said that improving internal collaboration is a top priority.
AI and workplace motivations align
From the tax, compliance and corporate professionals’ perspectives, AI systems can support priorities that directly impact internal productivity. Our research found that out of all the professionals surveyed, half (50%) are aiming to improve operational efficiency.
For three in five tax and accounting professionals (60%), the top priority is improving collaboration within the firm. Additional key priorities included improving communication with clients and offering new advisory services.
Nearly one in five tax and accounting professionals (18%) surveyed also believed AI systems would improve collaboration in their firm. The insights draw attention to genAI’s potential to improve efficiency, help reduce external spend and lift productivity. AI systems can also be deployed to seek out latest industry regulation and legislative developments.
Data is key for most processes, especially in tax compliance and finance. Since the ATO introduced the justified trust approach six years ago, understanding how transactions are being conducted has been a key focus for the regulator. According to Alice Han, Proposition Manager at Thomson Reuters, the push for tax transparency has intensified even further because of digitisation.
“We’re in the beginning of a tech revolution,” commented Alice in the April edition of CFO Magazine’s ‘Sit Down’ webinar entitled ‘Navigating Tax Complexity: Strategies for Tomorrow’s Landscape’.
“The sentiment around it was fearful in the past, but now it’s about looking at how technology can bring about change and add value to current processes.”
A holistic data and technology strategy is essential to navigating Pillar Two alongside your other compliance obligations. Now is the time to build your data models and to choose a calculation engine to help you determine global and local tax obligations.
A multifunctional team can help create an implementation plan, anchored in operational readiness, data strategy and quantitative analysis. Automation can streamline your ability to extract, cleanse and organise the data.
AI set to disrupt future of training and development
Large language models (LLMs) will play a vital role for the future of professionals. AI system literacy and know-how will likely be a prerequisite for the future of work. As hardware evolves to fuse with AI system functionality, professional responsibilities, workflows, internal and external processes will be impacted.
Our research found that close to half corporate, tax and risk professionals (46%) anticipate basic AI system training will become mandatory for work in the next 18 months.
The results indicate a major shift in how entry-level juniors will be trained moving forward with 42% of tax, accounting and corporate professionals predicting tertiary education delivery will be impacted.
What are the limitations of genAI for corporates?
The development of genAI tools has empowered professionals to tackle challenges efficiently. At the same time, it is important to be aware of the limitations according to Carter Cousineau, Vice President, Responsible AI and Data at Thomson Reuters.
“As a user, it’s really important to get to know those limitations, that is how you can start to see how it would better shape and impact your work.”
“Getting to know what it can do well, what it can’t do well, and then asking questions about ethics, or privacy concerns,” said Carter.
“Ask questions about overall compliance or due diligence because that will allow you to get clarity and transparency.”
Supply chain transparency across the lifecycle is key for both third party and custom-built AI systems.
“The right partners will have the answers,” Carter added.
“By asking those questions, we’re able to put some additional mitigation tools and techniques in place for the actual systems themselves.”
Technology evolution continues
An adaptive and tailored approach to nurturing future professionals is key. Among corporate survey respondents 23% of professionals recognise AI systems will become essential in future as a core, professional competency; indicating that training and development for existing talent should be readily available.
Professionals ought to equip themselves with the necessary skills to navigate and leverage AI technologies effectively. Prolific use of AI systems and LLMs is transforming professional landscapes with an explosion in data volumes.
The integration of genAI into work calls for corporate cultures that champion learning and innovation. With an unprecedented level of productivity and value in the foreseeable future, find the answers you need and more, with our genAI insights.
