CFOs and tax leaders are feeling more optimistic about Generative AI (GenAI) and implementing it in their work lives according to two recent surveys.
EY’s latest Tax and Finance Operations survey, which gathered insights from 1,600 professionals, has shown that 87% of respondents now believe GenAI will drive increased efficiency and effectiveness in tax and finance functions.
GenAI is transforming work for finance professionals, with 70% of them planning to invest in AI within the next five years according to a Wolters Kluwer survey.
“AI adoption within the office of the CFO is no longer a question of ‘if’ but ‘when’ and ‘how’,” said Ralf Gärtner, Senior Vice President and General Manager of Wolters Kluwer.
EY’s Global Vice Chair, Marna Ricker, said GenAI is “empowering tax professionals to have a transformative mindset, allowing them to be more efficient, focus on more strategic tasks and make better decisions.”
EY survey highlights cost pressures and talent shortages
For the first time in the survey's six-year history, cost pressures have emerged as the top concern for finance leaders as cumulative cost-cutting and inflation is significantly eating into tax and finance functions’ budgets.
Almost half (49%) of respondents cited budget management as their top priority, with 86% actively seeking to reduce expenses.
The talent gap in the tax and finance sectors is reaching critical levels. The survey reveals that 70% of leaders acknowledge a diminishing influx of new accountants as senior professionals retire. More than half (53%) reported difficulties in attracting and retaining qualified talent.
Dave Helmer, EY Global Tax and Finance Operate Leader, said: "The talent gap has reached crisis proportions. Employees are being called on to do more with less, but businesses also want tax professionals to spend twice as much time on strategic tasks than they do on routine work".
Over half of respondents (55%) said GenAI will not lead to a reduction in the tax function workforce but companies will reallocate their employees’ time away from routine tasks to more strategic ones.
Wolters Kluwer’s research report AI in Finance, from Scepticism to Optimism published today shows that improving efficiency was the primary motivator driving AI adoption for respondents with 41% citing this as their main motive.
This drive for efficiency gains was followed by reducing costs and enhancing risk management and decision making, with 18% of all respondents citing these reasons as driving their adoption of AI.
GenAI adoption in early stages for many organisations
Despite the optimism surrounding GenAI, the EY survey found that 75% of respondents characterise their tax and finance functions' current use of GenAI as either nonexistent (23%) or exploratory (52%).
These numbers suggest that while there is enthusiasm for GenAI, many organisations are still in the early stages of implementation.
Marna Ricker, EY Global Vice Chair of Tax said: "This technology is revolutionising 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.”
Regulatory pressures drive need for technological transformation
Both surveys highlight that tax functions face growing pressures to manage complex and data-intensive obligations.
Commenting on the regulatory pressures, Helmer said: "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.”