EY Survey Reveals CFOs and Tax Executives Embrace Generative AI as Key to Overcoming Financial Challenges

EY Survey Reveals CFOs and Tax Executives Embrace Generative AI as Key to Overcoming Financial Challenges

(IN BRIEF) A recent EY survey indicates that CFOs and tax leaders are increasingly optimistic about generative AI (GenAI), with 87% believing it will enhance efficiency in the tax and finance sectors. Cost pressures have emerged as the top concern for the first time, while talent shortages reach critical levels. The survey highlights the urgent need for transformation in tax and finance functions to meet new regulatory requirements and improve budget management. Over half of respondents expect GenAI to shift focus from routine tasks to more strategic activities, enhancing overall productivity.

(PRESS RELEASE) LONDON, 10-Oct-2024 — /EuropaWire/ — A recent survey conducted by EY reveals that CFOs and tax leaders are increasingly optimistic about the transformative potential of generative AI (GenAI) in addressing challenges within the tax and finance sectors. The study indicates that 87% of respondents believe GenAI will enhance operational efficiency and effectiveness, a notable increase from just 15% last year. As organizations grapple with rising costs and regulatory pressures, the demand for skilled talent in tax and finance is at an all-time high.

The findings stem from EY’s latest Tax and Finance Operations (TFO) Survey, which gathered insights from 1,600 CFOs and tax professionals across 32 jurisdictions and 18 industries. The report underscores the urgent need for tax and finance functions to evolve to meet escalating cost challenges, talent shortages, and new regulatory compliance requirements, particularly regarding global minimum tax frameworks.

Marna Ricker, EY Global Vice Chair – Tax, highlighted the transformative impact of GenAI, stating, “This technology is revolutionizing the tax and finance landscape by streamlining complex reporting tasks and managing extensive data sets. It empowers tax professionals to adopt a transformative mindset, focusing on strategic initiatives and informed decision-making, ultimately unlocking greater value for their organizations. While many leaders are still exploring how to effectively leverage this technology, now is the time to create a strategic plan for the responsible integration of GenAI.”

For the first time in six years, cost concerns have emerged as the leading challenge for respondents, with inflation and cost-cutting measures significantly affecting tax and finance budgets. Nearly half of those surveyed (49%) cited budget management as their top priority, with 86% actively seeking to reduce expenses.

The survey also indicates that tax functions face growing pressures to manage complex and data-intensive obligations, such as real-time digital tax filings and compliance with OECD recommendations, including the Pillar Two global minimum tax initiative. Forty-two percent of organizations anticipate significant adjustments to their reporting data under this new framework, while 82% expect to implement moderate to substantial changes in their reporting processes.

Dave Helmer, EY Global Tax and Finance Operate Leader, emphasized the ongoing regulatory pressures, stating, “The strain on tax and finance functions is palpable as businesses strive to implement the necessary data and technology solutions to meet these challenges. Intelligent agents and data reusability are vital components in navigating this landscape.”

The talent shortage in the tax and finance sectors is reaching critical levels, with 70% of leaders acknowledging a diminishing influx of new accountants as senior professionals retire. More than half (53%) reported difficulties in attracting and retaining qualified talent. Interestingly, 62% of respondents believe that individuals without university degrees are becoming an increasingly valuable talent pool.

Helmer further noted, “The talent gap has reached crisis proportions. Professionals are expected to do more with fewer resources, yet businesses desire tax experts to dedicate more time to strategic initiatives rather than routine tasks. As a response, many organizations are exploring co-sourcing strategies, particularly given budget constraints and the need for investment in technology and GenAI.”

Contrary to fears that GenAI may reduce the size of the tax workforce, over half of respondents (55%) believe it will lead to a reallocation of staff towards more strategic, high-value activities, moving away from routine compliance tasks.

Media Contact:

Michael Curtis
EY Global Industry Markets Media Relations & Social Media Leader

SOURCE: Ernst & Young Global Limited