Finance Monthly - August 2023

Finance Monthly. 6 THE MONTHLY ROUND-UP News You Can’t Afford to Miss The Monthly Round-Up 40% OF C-SUITE LEADERS WILL INVEST $10M+ IN ARTIFICIAL INTELLIGENCE TO TRANSFORM TAX DEPARTMENTS By effectively leveraging data and harnessing the power of technology like artificial intelligence (AI), corporate tax departments can drive even greater value for the broader business. That’s according to the latest edition of the annual KPMG LLP report, “Tax Reimagined 2023: Perspectives from the C-suite,” which shows that when tax departments are armed with the right technology and talent with the right mix of skills, they will be recognized as a strategic powerhouse. The findings from the report, which features insights from 500 C-suite executives at organizations with $1 billion or more in revenue, indicate three primary trends: 1. A strong willingness to embrace AI – more than half are already using AI in their tax departments 2. Increasing ESG pressures to address tax transparency 3. A sharp increase in the willingness to turn to alternative sourcing arrangements, like outsourcing or co-sourcing, to leverage the skills and technology investments of third-party providers. With external factors like the uncertain economy, the ever-changing international and domestic legislative and regulatory environment, as well as the rapidly evolving technology landscape, the clock is ticking for tax departments to prioritize investments in emerging technology and talent, or risk being left behind. KEY FINDINGS: Artificial intelligence – the next frontier for tax departments • 59% of surveyed leaders are already using emerging AI technology in their tax or finance department to make workflows more efficient and reduce the strain on existing talent. • Of the 41% who aren’t yet using AI, all are interested in doing so. • 100% say the proliferation of artificial intelligence will change their tax department’s human capital strategy. Willing but unprepared – when tax comes face-toface with ESG • 95% of respondents are willing to disclose their total tax contributions, however 85% of those say they are not currently prepared to do so. • As regulatory bodies in the US and abroad begin to require greater tax transparency, a surprising 62% of C-suite leaders estimate it will be at least five years before their organizations are mandated to disclose their total tax contributions. • 40% say the greatest risk to disclosing their organization’s total tax contributions is giving away competitive intelligence.

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