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GenAI exploded into the mainstream in late 2022 and is already having a transformational effect on the business world and the global economy. EY teams estimate GenAI could increase global GDP by US$1.7t to $3.4t (via ey.com US) over the next decade and have a meaningful impact on more than half of the world’s workforce.
The core difference between traditional machine learning and GenAI is that machine learning finds patterns and makes predictions based on past data, while GenAI can, by itself, understand the reasoning and make decisions almost instantaneously across a very broad range of tax activity.
“Tax professionals are early movers in innovating with GenAI because tax is a data-driven, rules-based operation,” says Raj Sharma, EY Global Managing Partner – Growth & Innovation. “I anticipate innovations in this space to continue growing exponentially in the coming years, especially for organizations that make the right investments.”
Survey respondents see GenAI improving every part of their functions, ranging from data acquisition through to compliance and controversy. But it’s still early days; seventy-five percent characterize their tax and finance functions’ use of GenAI in practice to be either nonexistent (23%) or exploratory (52%). That usage will likely shift dramatically to the “emergent” and “integrated” categories on the maturity scale over the coming years, with more organizations finding GenAI to be “transformative.”