Majority of Tax Departments Are Adopting or Exploring Generative AI
- Written by Newsfile
March 15, 2024 9:31 AM EDT | Source: KPMG LLP[1]
New York, New York--(Newsfile Corp. - March 15, 2024) - The latest edition of the KPMG LLP "Chief Tax Officer Outlook[2]" revealed a majority of Chief Tax Officers (CTOs) are already utilizing generative AI (gen AI) in their tax departments or are exploring its potential. The survey from the U.S. audit, tax and advisory firm found that 29 percent are currently using gen AI, while an additional 26 percent are taking action to explore its capabilities.
"The use of advanced tools and technologies has become indispensable for building a resilient tax function," said Rema Serafi[3], Vice Chair - Tax at KPMG LLP. "From automating time-consuming tax compliance tasks to predicting data patterns and trends that lead to more informed transactions, CTOs must continue to challenge themselves and their organizations to integrate more AI and advanced technologies into their processes."
Increasingly with the use of AI and other technologies, tax functions are streamlining processes and reducing the time spent on burdensome tasks so that tax professionals can spend more time on strategic initiatives - an 18+ increase over the same data point in 2023. The findings overall indicate a new era of technology-driven tax functions, with 30 percent of respondents also expressing their intention to increase technology investments over the next 12 months.
"Tax departments that embrace generative AI technologies are in a better position to add enhanced value to their teams," said Kevin Jackson,[4] National Managing Partner - Tax, KPMG LLP. "We expect to see an increase in tax departments' spend in professional development and training not only over the next year, but over the next several years, to empower and prepare them to use these tools with confidence and maximum effectiveness."
As part of KPMG's US$5 billion investment in technology, people and innovation to accelerate digital transformation and its recent US$2 billion expanded partnership with Microsoft and investment in AI and cloud services, the firm is continuously enhancing its services, including Digital Gateway - a Microsoft Azure-powered platform that equips clients with a one-stop-shop to KPMG tax technology solutions.
Survey Methodology
The KPMG report is based on insights from 300 Chief Tax Officers leading tax functions at large public and private U.S. companies. The participating CTOs represent organizations with a revenue of $2 billion or more, accounting for 90 percent of the sample.
About KPMG LLP
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 143 countries and territories and has more than 273,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity and eradicating childhood illiteracy. Learn more at www.kpmg.com/us[5].
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Media ContactErica Leeericalee3@kpmg.com[6]646-920-2959
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/201804[7]
References
- ^ KPMG LLP (www.newsfilecorp.com)
- ^ Chief Tax Officer Outlook (api.newsfilecorp.com)
- ^ Rema Serafi (api.newsfilecorp.com)
- ^ Kevin Jackson, (api.newsfilecorp.com)
- ^ www.kpmg.com/us (api.newsfilecorp.com)
- ^ ericalee3@kpmg.com (www.newsfilecorp.com)
- ^ https://www.newsfilecorp.com/release/201804 (api.newsfilecorp.com)
- ^ KPMG LLP (www.newsfilecorp.com)