Tax Technology and Transformation

A significant number of our clients have experienced advantages from implementing AI, with many expecting it to revolutionise tax planning and strategy within the next three years. Organisations can establish priorities and use cases for AI, integrate a technology ecosystem and enhance team skills to fully exploit AI’s potential in the tax function.

Tax functions are under strain due to limited resources, increasing regulatory demands and the need to support strategic business decisions. Organisations can enhance the efficiency of daily tax operations by upskilling teams or hiring for the appropriate skills and expertise, as well as repurposing talent internally to more technology focused roles.

As many organisations continue to ride the business remodelling wave, the operating model discussion is becoming increasingly relevant for tax activities both in the short- to medium-term. They can assess their existing skills, technology and processes to address current and future needs, and balance these requirements against the expertise they can hire, purchase or develop.

Resource constraints often pose significant hurdles for tax functions. The right tools can help overcome these challenges, fostering an agile, innovative team environment. As tax evolves, businesses are aligning strategies with broader sustainability goals — and tomorrow’s tax professionals will be strategic advisors in this shift.

 PwC’s Tax AI Assistant, powered by Harvey, transforms how tax teams do their work. It combines PwC’s deep expertise

with Harvey’s market leading AI platform, delivering analysis in moments with the security and professional rigour your business demands. It generates content aligned with local regulations, answers complex, open-ended questions and supports workflows tailored to your needs. By embedding predictive insights and recommendations into tax processes, these tools help organisations move beyond manual tasks toward smarter, data-driven decision-making.

Take tax compliance: reconciling financial transactions across multiple accounts is often time-consuming. With self-service data tools and low-code automation, organisations can streamline reconciliation, validation and reporting. AI adds another layer, helping teams analyse vast datasets, uncover patterns and unlock new opportunities. By reducing time spent on manual processes, businesses can reallocate resources to drive continuous improvement and operational efficiency — a critical advantage in today’s cost-conscious environment.

When procuring tax technology, evaluate your existing enterprise platforms. Align your tax function with the scope and timing of ongoing and future transformations and other enterprise investments. Leveraging low-code automation and existing enterprise platforms for tax purposes is gaining traction. Assess whether your current software can be enhanced or modified, or if your business holds technology licenses that the tax team can use.

Integrating tax solutions driven by end-users is a practical approach compared to large-scale enterprise-wide transformation or tax engine implementation projects. Pursuing automation using existing enterprise platforms can be a compelling strategy for cost optimisation.

In today’s rapidly evolving regulatory environment, staying ahead of compliance requirements is not just a necessity but a strategic advantage. By proactively developing and implementing comprehensive data management strategies, clients can ensure they are not only meeting the stringent requirements of obligations such as Pillar 2, DAC7, CESOP and other regulatory frameworks, but are also positioning themselves as leaders in their industry. These strategies enable organisations to streamline their data processes, reduce the risk of non-compliance and enhance their overall operational efficiency.

It is important that approaches encompass data extraction, manipulation, calculation, compliance and reporting obligations. Moreover, a robust compliance framework can significantly boost stakeholder confidence, demonstrating a commitment to transparency and accountability.

Leveraging these strategies effectively can also unlock new opportunities for growth and innovation. By investing in advanced data management tools and practices, clients can gain deeper insights into their operations, identify areas for improvement and make more informed business decisions. This proactive approach to compliance not only mitigates risks, it also fosters a culture of continuous improvement and resilience. Ultimately, embracing these obligations as integral components of your business strategy can lead to sustainable success and a competitive edge in the marketplace.