Dive overview:
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Nearly three-quarters (70%) of U.S. business executives who responded to a recent survey by accounting giant KPMG said their companies would spend more than $1 million over the next 12 months on artificial intelligence technology to automate tax-related functions. He said he has plans to invest.
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More than half (59%) of respondents said their tax or finance departments are already using AI to make workflows more efficient and reduce the burden on current staff, according to a report on survey results. bottom. Of the 41% of companies not yet using AI, almost all are interested in using it.
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“AI will create a corporate reality of ‘haves’ vs. ‘have nots’ between those that embrace technology to transform their tax function and those that are left behind,” said KPMG Tax Technology. and Brad Brown, Head of Transformation Practice. said in a press release.
Dive Insight:
AI has captured the attention of business leaders and the general public in recent months since the announcement of Microsoft-backed OpenAI’s generative AI tool known as ChatGPT. ChatGPT has the ability to answer complex questions, draft essays and poems, and write software code. .
A Gartner survey released in May found that 70% of business executives said their companies were investigating or considering generative AI. Nearly 20% of his respondents said their organization has AI projects in “pilot or production mode.” A further 45% of respondents reported that hype about ChatGPT has encouraged companies to invest more in AI.
Tax automation, in particular, is one area where executives are actively engaging with AI, according to a KPMG survey. The survey found that of the 70% of organizations planning to invest $1M or more in AI for tax automation over the next 12 months, 40% plan to invest at least $10M.
According to the report, many tax departments are already using AI to automate routine tasks, identify potential tax risks, improve compliance and reporting accuracy, and enhance tax planning and forecasting. . The technology is also being used to analyze large amounts of data to look for patterns and trends that can help tax departments make more informed decisions.
“As AI advances, it will take on more complex tasks, and executives agree that the pervasiveness of AI will change the human capital strategy of the tax department,” the report said. the book says. “A holistic reassessment of roles and skill requirements is essential to unleash the combined power of the human and machine workforce.”
KPMG conducted a survey of 500 US executives from March 10th to March 30th. Respondents represented companies with more than $1 billion in annual revenue.
