AI transforms tax profession from compliance to advisory

Artificial intelligence is reshaping the tax profession by automating routine, pattern-based tasks such as data entry, document classification, and research retrieval. Research from the Thomson Reuters Institute suggests that 2026 will be a pivotal year as firms transition from compliance-focused services toward high-value advisory roles.

EY (Ernst & Young) is implementing a 'Future Tax' digital transformation program to facilitate this shift. The firm aims to evolve tax professionals into 'process designers' who focus on business strategy and client consulting. By integrating AI, EY reports significant efficiency gains; for example, tasks like client group structure analysis that previously took over five hours can now be completed in approximately one hour through AI-assisted data collection and drafting.

To remain competitive, professionals are encouraged to develop skills that AI cannot replicate, including professional judgment, critical thinking, complex problem-solving, and the ability to build deep, trust-based client relationships.