A new survey from EY, a professional services organization, highlights how generative AI (GenAI) may reshape tax and finance functions. The findings from the 2024 EY Tax and Finance Operations (TFO) Survey show optimism about the potential of GenAI to improve efficiency and compliance in a field facing rising costs, talent shortages, and complex regulatory demands.
The EY survey gained insights from 1,600 CFOs and tax professionals across 32 jurisdictions and 18 industries, including 66 respondents from SEA nations like Indonesia, Malaysia, and Singapore. Over three-quarters of respondents in SEA (82%) and globally (87%) believe GenAI can significantly boost effectiveness.
Despite this optimism, 92% of SEA respondents say their organizations are in the early stages of adopting GenAI.
“Technology, including GenAI, is revolutionizing the tax and finance function by helping to manage complex reporting tasks and large amounts of data,” said Elaine Yeo, tax and finance leader of EY Asean. “This allows professionals to focus on strategic tasks and unlock value for their organizations.”
Pressure on cost
For the first time in the survey’s six-year history, cost pressures emerged as the top concern. Four in 10 SEA respondents (40%) say managing budgets is their primary focus, while 80% aim to reduce expenses. Inflation and budget cuts have strained tax and finance teams, further emphasizing the need for efficient technologies like GenAI.
Tax functions face increasingly complex reporting obligations, such as real-time digital tax filings and compliance with global standards like the OECD’s Pillar Two, which sets a minimum tax rate of 15% for large corporations. In SEA, 38% of organizations anticipate significant adjustments to meet these reporting requirements.
“Mounting regulatory and reporting pressures, including the complexities of BEPS, continue to strain tax and finance functions,” Yeo said. “Leveraging data reuse and intelligent tools can address these challenges, allowing teams to focus on growth and innovation.”
Talent challenges
The survey also underscores a growing talent gap in tax and finance, with 77% of SEA leaders (global 70%) feeling the effects of fewer entrants to the profession. Many organizations are now turning to non-traditional talent pools, with 64% of SEA respondents (global 62%) recognizing the value of employees without university degrees.
Despite fears of workforce reductions, 56% of SEA leaders (global 55%) say GenAI will not lead to job cuts. Instead, they foresee a shift toward strategic, high-value activities.
“The talent gap has reached crisis proportions,” Yeo said. “Employees are being asked to do more with less. Businesses are also turning to co-sourcing as they invest in technology and GenAI.”
“As businesses navigate digital tax administration and BEPS requirements, GenAI adoption is crucial to address talent shortages and improve efficiency,” said Frances Rose Villamayor, tax partner at SGV. “With advanced technologies, tax professionals can focus on strategic decision-making and drive value in a competitive landscape.”