AI reshaping finance, tax functions amid global uncertainty — survey

Artificial intelligence is rapidly reshaping how finance and tax departments operate, as companies deploy new technologies to navigate geopolitical uncertainty, regulatory change and widening talent shortages, according to the latest Ernst and Young (EY) Tax and Finance Operations (TFO) Survey.

Published locally by SGV & Co., the study, which surveyed 1,600 chief finance officers and senior finance and tax leaders across 30 jurisdictions and 22 industries, shows organizations accelerating the use of generative AI, data analytics and automation to modernize operations and improve decision-making.

Across Southeast Asia, 95 percent of tax leaders said they are prioritizing the use of data, artificial intelligence and advanced technologies to generate insights, strengthen predictive analytics and automate reporting processes.

The shift comes as finance and tax functions face rising complexity from evolving trade policies, geopolitical disruptions and tighter regulations.

“Across Southeast Asia, we see more companies embracing transformation and automation, including leveraging emerging technologies such as artificial intelligence to streamline finance and tax processes,” said Elaine Yeo, EY ASEAN tax and finance operations leader.

The survey found that 89 percent of Southeast Asian organizations plan moderate to significant changes to their business operations within the next two years, including adjustments to supply chains and operating models.

At the same time, new tax rules are adding pressure on finance teams. The OECD’s Pillar Two global minimum tax regime – which establishes a 15 percent global minimum tax on multinational corporations – emerged as the most significant regulatory development affecting companies, with 92 percent of Southeast Asian respondents expecting their overall tax liabilities to increase once the new framework takes effect.

Despite the scale of these changes, only 15 percent of organizations in the region said they are fully prepared to comply with Pillar Two reporting requirements.

However, the survey noted that technology adoption still faces significant challenges. 65 percent of Southeast Asian respondents said the lack of a sustainable data and technology strategy remains the biggest barrier to transforming their tax operations.

Workforce constraints are another key concern. 61 percent of respondents expect the retirement of senior tax professionals to significantly affect their organizations, while 66 percent said the declining number of new accountants entering the profession could worsen the talent gap.

To address these pressures, companies are investing heavily in new skills. Around 80 percent of Southeast Asian respondents are prioritizing hiring data scientists and tax technology specialists, while 70 percent are investing in reskilling existing employees to prepare for increasingly digital finance functions.