CFOs, Tax Leaders Look to Revamp Data in AI Age, EY Leader Says

Why It Matters

Enhanced data access and AI integration enable tax functions to meet complex regulations, lower compliance costs, and become strategic partners in enterprise decision‑making.

Key Takeaways

• Pillar 2 drives demand for broader tax data reporting.
• 86% of tax leaders prioritize AI, tech, data initiatives.
• Siloed data and outdated processes block AI transformation.
• Companies adopt data lakes/hubs for centralized tax information.
• CFO involvement crucial for tax’s strategic integration.

Pulse Analysis

Regulatory shifts such as the OECD’s Pillar 2 framework are reshaping the tax landscape, forcing companies to collect, store, and report far more granular information than ever before. This surge in data requirements is prompting finance leaders to re‑evaluate legacy systems, often unlocking previously unavailable budgets for data modernization projects. By investing in centralized repositories—data lakes or hubs—organizations can provide tax teams with the transparent, real‑time access needed to satisfy both domestic and cross‑border compliance obligations.

EY’s recent survey underscores a growing appetite for AI and advanced analytics within finance and tax, with 86% of respondents flagging technology as a strategic priority. However, the path to true AI‑driven transformation is obstructed by two primary challenges: entrenched data silos and rigid, multi‑layered review processes. Overcoming these hurdles requires not just new tools but a fundamental redesign of workflows, allowing AI to streamline verification steps and surface insights that were previously hidden in manual checks. Companies that successfully integrate AI into reengineered processes can expect faster reporting cycles and reduced error rates.

The CFO’s role is pivotal in this evolution. By positioning tax as a forward‑looking, value‑creating function rather than a cost center, finance leaders can secure the necessary resources and embed tax considerations early in initiatives such as ERP upgrades or supply‑chain redesigns. This collaborative approach not only mitigates compliance risk but also leverages tax insights to inform broader strategic decisions, ultimately driving efficiency and enhancing enterprise value. As AI matures, the synergy between CFOs and tax professionals will become a decisive competitive advantage.