The latest Ernst and Young Tax and Finance Operations Survey published locally by SGV & Co., with respondents including 1,600 chief finance officers and senior finance and tax leaders across 30 jurisdictions and 22 industries, show that organizations are accelerating the use of generative AI, data analytics and automation to modernize operations and improve decision-making.
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Artificial intelligence (AI) 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.
Tax leaders prioritize use of data, AI, advance tech
Across Southeast Asia, 95 percent of tax leaders said they are prioritizing the use of data, AI 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.
Tax rules adding pressure on finance teams
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.
