On the 30th November, ChatGPT reached its second anniversary and as we approach the end of 2024 it’s a perfect time to reflect on how AI, particularly Generative AI has had an impact on tax and finance functions.
Andrew Burman, Principal of Tax Technology at Ryan shares his thoughts below and predictions for the future. Feel free to use his commentary in any upcoming pieces. .
Andrew Burman, Principal of Tax Technology at Ryan, said: “As we approach the end of 2024, it’s the perfect time to reflect on the impact AI, particularly generative AI, has already had on tax and finance functions, and how swiftly people’s attitudes towards it have evolved. There has been a surge in adoption by accounting and tax teams, and we have seen many change their perspective on AI from threat to opportunity. From smaller businesses using public models to ask basic questions and expect standard answers to help with basic research, to large companies, consulting firms, and software companies investing heavily in their own private AI models to glean simple yet powerful insights, we are seeing many organisations start to use AI to some extent.
As the tax world becomes more real-time and complex, AI will become increasingly valuable in helping track data and performance, identify potential areas for investigation, and suggest opportunities throughout the year to optimise tax decisions, which a human simply would not have the capacity to identify. However, humans will remain in the loop for some time, contributing to the changing perspective of AI as an opportunity for people to “supercharge” their impact, rather than a threat to jobs. Any concerns we are seeing are probably less about the technology itself and more about the confidence tax professionals have in AI’s outputs, concerns over bias, the security of data, and, of course, cost. We are also seeing interest in understanding the basics – what is AI, how can it work for me, and what are others doing?
When companies invest early and prudently in AI, they have a better chance of maximising the benefits and learning from different use cases. Over time, we will be able to evolve and create increasingly relevant, accurate, and trustworthy use cases as we embed AI more deeply into our technologies and ways of working. As it interacts with us and becomes “part of the team,” this evolution will not happen in one step. Rather, we are seeing clients try a variety of ways of using AI in their work. As always with technology, its capabilities are rapidly evolving, and the potential is significant. However, it’s important for companies to first understand which use cases create the most value for them and the most cost-effective ways to capture that value before jumping “headfirst” into using these tools.”
