It’s time to position your organization for a successful AI-enabled tax transformation. Are you ready to lead the way?

Key takeaways

• AI and automation are transforming the tax function, requiring leaders to balance deep technical skills with a robust understanding of emerging technologies.
• Human skills like curiosity, critical thinking, adaptability, and emotional intelligence are essential for tax leaders to drive innovation, strategic value, and effective collaboration.
• Tax professionals must continue to embrace lifelong learning, adopt new technologies thoughtfully, and foster a culture that rewards exploration and upskilling.
  

Today’s tax leaders face an unprecedented level of uncertainty. As advanced AI tools become universally accessible, the tax function will demand deep substantive and procedural expertise, along with a robust understanding of the AI technologies shaping our profession. 

AI and automation’s promise of greater efficiency is influencing decisions about operating models, sourcing strategies, and cost structures across corporate functions, including tax.    

Tax leaders now face a dual mandate:   

• Continue to satisfy regulatory obligations and deliver strategic advice with confidence. 
• Constantly assess and capture business value through operating model and process changes.   

In this environment, true differentiation, for both internal teams and external advisors, will come from the distinctly human capabilities that technology cannot replicate. Skills such as critical thinking, adaptability, and emotional intelligence will set tax leaders apart and drive meaningful value.

The human advantage in tax

Tax leaders have long been recognized for their technical expertise and ability to navigate complex legislation and deliver actionable advice. That foundation remains essential. The profession has historically embraced technology, from tax software to automation, but AI is now transforming the landscape at unprecedented speed. Leaders need to engage with technology early and often or face falling behind in efficiency, compliance, and strategic impact.

Fostering a culture of lifelong learning, embracing both soft skills and strategic thinking, and equipping your teams with the right tools will empower and enable you to deliver meaningful work and turn insights into impact.

In this dynamic landscape, the focus should be on balancing technical mastery with the ability to strategically define tax’s role in your organization. This calls for new approaches and a renewed commitment to continuous learning, strengthening both technical and interpersonal skills, and leveraging technology to enable teams to thrive.

Why does this matter? With AI and converging disruptions reshaping the business environment, tax will evolve beyond its traditional technical role and continue its transformation into a strategic business partner, actively contributing to enterprise decision-making and value creation.

Today’s tax challenges

Tax and Legal professionals are motivated by a range of factors, from purpose (public impact, justice, compliance) to craft (mastering complex regulations). Flexibility and autonomy also play a key role in shaping how tax professionals work and deliver value. The most successful tax leaders share commonalities: curiosity, keen observation, and the ability to build long-lasting and cross-functional relationships. But even those who exemplify these qualities are challenged by an increasingly complex and dynamic environment.

Key obstacles include:

Rising complexity

Navigating increasingly complex obligations, tax functions face heightened scrutiny on both tax value creation and tax transparency. As other business leaders pursue efficiency, the push for tax to deliver strategic value, while managing increased tax compliance requirements, has never been stronger.

Talent crunch

Meeting future demands means rethinking talent strategies by sourcing, developing, and retaining the right people. While traditional credentials remain important, there will be a greater emphasis on skills like curiosity, emotional intelligence, adaptability, critical thinking, and problem solving. Building these skills will be an important component of organizational apprenticeship models.

Technology disruption

Harnessing optimism about new technologies is fueling action across the business community, as AI performance, use cases, and regulatory frameworks continue to evolve. For tax functions, the AI focus should be to enhance, rather than replace, jobs.

Cost pressures

Operating under constant pressure to increase speed and reduce costs, corporate functions must make efficiency the language of today’s business environment without sacrificing quality.

How tax leaders can meet the moment: Key insights

Curiosity drives innovation

Curiosity sets tax leaders apart in a rapidly evolving landscape. By questioning assumptions and exploring new solutions, the tax function can adapt to emerging technologies. This is a distinctly human capability that AI cannot replicate.

Actions to take:

Embed curiosity into performance expectations. Reward exploration, encourage asking “why,” and participate in forums or roundtables for sharing ideas across functions and with peers to broaden thinking.

Lifelong learning remains essential

A solid technical base remains essential, yet leaders also need to expand their skill set to remain effective. To stay relevant and deliver value, tax advisors must continuously upskill in technology, AI, and industry knowledge.

Actions to take:

Prioritize personalized development approaches for early-career professionals and managers to build confidence and adaptability. As leaders advance in their careers, working with trusted advisors can accelerate upskilling and prepare their teams to be future-ready.

Human skills complement AI

AI excels at data processing. However, human judgment, critical thinking, and ethical reasoning remain irreplaceable human skills. Tax leaders should reframe roles to highlight the human value in AI-augmented work, redesigning structures for agility, purpose, and mentorship, all while ensuring adherence to the quality standards that are the hallmark of our profession.

Actions to take:
Promote adoption by tax practitioners of AI tools and encourage attendance at programs that teach professionals how to interpret AI outputs, validate insights, and apply strategic thinking. Seek out best practices and leverage insights from trusted sources and early adopters of tech-enabled tax practices, to accelerate adoption and avoid common pitfalls.

Let’s continue the conversation

Today’s tax leaders operate in an environment shaped by rapid transformation, growing complexity, and increasing expectations for strategic impact.

At Deloitte, we are deeply engaged in helping tax and finance leaders navigate this moment. Whether you are reimagining your operating model, investing in new technologies, or empowering your people with future-ready skills, we can help you balance cost, compliance, and strategic impact.

Let’s continue the conversation and consider how we can shape the future of your tax function together.