- IBM (IBM, Financial) and EY announce AI-driven tax compliance solutions to revolutionize the field.
- Three AI-enabled solutions aim to save tens of thousands of hours annually in tax processes.
- IBM is set to automate 80% of its foreign tax compliance, streamlining data from 36 sources.
IBM (IBM) and EY have launched a new suite of artificial intelligence-powered tax compliance solutions, branded as EY.ai for tax. This innovative suite, developed using IBM's watsonx AI technology, aims to streamline and modernize tax compliance processes. The collaboration between IBM and EY combines advanced AI capabilities with EY’s deep tax expertise, presenting a significant step forward in the automation of tax processes.
The partnership has introduced three key AI-driven solutions designed to enhance efficiency and accuracy in tax compliance:
1. Intelligent Tax Data Lake: Utilizing watsonx.data and watsonx.ai, this solution consolidates and manages tax filing data from multiple sources. It ensures a more streamlined and reliable data management process.
2. Detect and Correct with Business Documents: This solution extracts and verifies data from unstructured invoices, significantly automating and speeding up a process that was previously manual and time-consuming.
3. Withholding Tax Determinations: Automates the calculation of monthly withholding tax rates, enabling more efficient and accurate evaluations of thousands of intercompany transactions.
These solutions are already being implemented within IBM's tax department, where they are expected to save tens of thousands of hours annually. The integration of AI into tax compliance processes underscores IBM's strategic focus on leveraging technology to drive operational efficiency and innovation. The company is on track to automate 80% of its foreign tax compliance, consolidating data from 36 different sources while ensuring the security and trust necessary for handling sensitive tax information.
IBM Vice President and Chief Tax Officer Kanthi Morrissey emphasized the transformation in IBM’s tax department, highlighting how the integration of AI solutions allows staff to focus on more strategic, value-creating work. The solutions developed by IBM and EY underscore the potential of AI to convert administrative functions into strategic assets.
