It seems like everyone is talking about artificial intelligence these days, but is it all just talk?
A closer look at the present-day landscape reveals that AI is not just hype, but a tangible force driving significant advancements in digital tax workflows. With the advent of AI-enabled tax compliance software, the once arduous and time-consuming tax processes have undergone a remarkable transformation. Today, accountants and tax professionals are empowered with powerful tools that streamline and optimize their work, revolutionizing the way tax compliance is handled. Let's delve into the possibilities that AI brings to the digital tax workflow, and explore how it is reshaping the present-day landscape of tax processes.
Tax automation then and now
When buying tax software, accuracy is table stakes, and efficiency is a differentiator. Although some might hesitate to trust new technology, automation can reduce the potential for human error. Tax workflow automation has come a long way in the last twenty years to make tax professionals more efficient without sacrificing accuracy.
Robotic process automation (RPA), a precursor to AI, set the stage for efficiency improvements, revolutionizing digital tax workflows by automating rule-based tasks like digitizing paperwork and organizing source documents. Later, machine learning technologies were introduced that helped firms automate more complex tasks like categorizing and grouping tax data. Now, technology providers are applying Generative AI technologies to analyze unstructured data for more advanced decision-making in tax workflows.