Utilizing Artificial Intelligence Technology to Explore New Frontiers in Tax Compliance

On November 14th, 2024, Sean Sutton, Tax SME at TAINA, participated in a compelling panel discussion hosted by the Investment Industry Association of Canada (IIAC), as outlined in Fintech Global News. Alongside industry experts Amy Harkins (Broadridge) and Guy Vadish (Artiffex), and moderated by Simon Lee from CIBC Mellon, the panel examined the transformative role of artificial intelligence (AI) in tax compliance.

The session explored the distinctions between machine learning and generative AI, emphasizing their respective capabilities in handling structured versus unstructured data. As Sean Sutton noted, «The potential of AI lies in its ability to automate routine tasks while ensuring data security remains a top priority.»

Panelists highlighted AI’s impact on efficiency, from automating data entry and document reviews to performing complex tax calculations. This automation streamlines processes, reduces costs, and allows tax professionals to focus on strategic challenges. Advanced data analytics further aid in processing vast quantities of unstructured data, leading to improved tax reporting and compliance accuracy.

One of the key advantages discussed was AI’s predictive prowess in risk management. By identifying anomalies in datasets and anticipating potential risks, AI enables businesses to resolve issues proactively while ensuring adherence to regulations. Sutton remarked, «AI tools in financial institutions are already revolutionizing processes like compliance monitoring and risk assessment.»

Despite its benefits, integrating AI into tax functions poses challenges. Organizations must address data accuracy concerns, as even minor AI errors could lead to significant compliance issues. Furthermore, embedding AI requires substantial investment in staff training and seamless integration into existing systems. Ethical considerations were also a focal point, with panelists stressing the need for secure handling of sensitive firm and customer data across multiple jurisdictions.

The panel predicted a surge in AI adoption among small and medium-sized enterprises (SMEs), driven by the cost-effectiveness of AI solutions compared to in-house development. As Guy Vadish noted, «The future of tax compliance will be shaped by continuous AI innovation, enabling companies of all sizes to enhance their operations.»

For businesses considering AI adoption, panelists recommended:

  • Conducting a comprehensive skills assessment.
  • Fostering a culture of continuous learning.
  • Developing a clear AI integration strategy.
  • Ensuring high-quality data inputs.
  • Using AI for real-time regulatory updates.

By embracing AI, companies can optimize tax compliance, achieving greater efficiency and accuracy while staying competitive in a rapidly evolving financial landscape. As Simon Lee aptly concluded, «AI is not just a tool for transformation; it’s a necessity for staying ahead in today’s dynamic business environment.»

Other articles
Why The Love Affair Between Fintech and AI Needs to Be Checked Out
The Way in Which Banks and Fintechs Are Approaching Treasury Needs
Automotive FinTech’s Rise: Using Vehicle History Data for Smarter Lending
Top 10 Finance Trends in 2025
iWallet Introduces Voice AI for Secure and Seamless Payments
How BaaS Can Unlock New Revenue Streams for Banks
How AI Will Drive Innovation in Wealth Management in 2025
Enterprise AI: Transforming Business Process Automation
Fintech in 2025: Key Industry Predictions
The Reasons Why the Future of AI Depends on Human Creativity
Driving the Future of Mobility: The Role of In-Car Payments
Morgan Stanley Partners with Wise to Enhance Cross-Border Payment Services
Mastercard Partners with Türkiye’s Dgpays to Advance Digital Payments
Automotive FinTech: Revolutionizing the Way We Buy, Lease, and Finance Vehicles
The Influence of Artificial Intelligence on Anti-Money Laundering Strategies in 2025