Most Indian CFOs See GenAI Enhancing Tax Efficiency, EY Survey

Generative AI Set to Transform Tax Functions, Says EY Survey
Generative AI (GenAI) is poised to revolutionise tax and finance operations, with 94 percent of CFOs and Finance and Tax leaders in India believing it will significantly enhance their tax functions—a sharp rise from 19 percent in 2023, a new survey by EY reveals. Globally, 87 percent of leaders echo this sentiment, underscoring GenAI’s potential to revolutionise tax functions worldwide.

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GenAI’s Impact on Tax and Finance Operations

The EY Tax and Finance Operations (TFO) Survey 2024, based on insights from 1,600 leaders across 32 countries and 18 industries, including 70 CFOs and tax leaders of leading Indian corporates, highlights key challenges in the tax and finance domain. Fourteen percent of Indian tax leaders are already developing strategies or running pilot projects, while 47 percent are in the exploratory phase, exceeding the global average of 40 percent.

Reflecting on the findings, Rahul Patni, Digital Tax Leader, EY India believes that “GenAI is clearly emerging as an effective tool for tax professionals to transform their workspaces and professional lives; every tax professional should learn about Gen AI, start applying it in routine tasks. Areas of application can range from AI assisted document reviews to data cleansing and drafting business deliverables for day-to-day matters. This will allow them to work more effectively, focus on strategic priorities, and make better decisions.”

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Routine Task Burdens

Despite these advancements, routine tasks like data collection and tax return preparation still consume significant time for 46 percent of Indian respondents, who believe these tasks should take no more than 20-25 percent of their time. This emphasises the need to streamline operations for a greater strategic focus.