Changing regulations, talent challenges, and AI are among the top concerns in 2025: New Deloitte Tax Transformation Trends report

New York, NY, 20 May 2025 – The ability to respond to external complexity is critical to the success of the tax function as organizations face geopolitical and economic uncertainty along with rapid technological advancement. Deloitte’s Tax Transformation Trends 2025 report, released today, reveals complying with global regulatory changes and talent challenges as top issues impacting tax operations. Surveying 1,000 senior tax and finance leaders, the report shows tax leaders are exploring AI as a solution to some of these challenges, but proceeding cautiously as the technology continues to evolve.

Demands for more granular data are increasing complexity
With the advent of new regulations such as the Organization for Economic Cooperation and Development’s Pillar Two, tax authorities are increasingly demanding more granular tax data from companies, sometimes in real-time or close to it. As a result, tax leaders highlighted complying with changing global tax laws as the number one challenge they expect to navigate in the coming years. On top of that, this data is oftentimes not readily available or “tax sanitized” and correct. More than 25% of respondents said that limited data and the lack of technology expertise are major challenges in fulfilling these requests—underscoring the convergence of regulation, data requirements, and technology as driving complexity within the tax function globally.

Tax leaders are embracing AI, even if cautiously
As tax departments face increasing complexity, the demand for AI skills and usage has surged. Survey respondents universally said that they were exploring the use of AI to meet global reporting requirements, transform operations, and deliver greater value to the organization. This diversity of capabilities is demonstrated by the top uses of AI today: transfer pricing documentation, corporate tax returns, and global tax provisions.

While tax leaders agree that AI holds significant potential, they are taking a cautious approach—partly due to ongoing concerns over accuracy and data security, and partly due to the lack of tax-specific AI tools available. The survey revealed these leaders are beginning to test AI technology by focusing first on automating routine tasks. Tax leaders today are most comfortable with AI handling transfer pricing documentation (47%), corporate income tax payments and returns (43%), and global tax provision (40%).

AI offers strategic opportunities in areas like tax forecasting, risk identification, and management—however, the survey revealed a cautious rollout (for now) with a preference for proven, low-risk applications of AI before tackling more complex tasks.

The talent crunch remains a major challenge
Shifts in the geopolitical, regulatory, and technological landscape are dramatically changing how tax work is getting done—and revealing emerging challenges along the way. Access to talent was the second-most common challenge cited by survey respondents, particularly as it relates to specialist AI skills (45%), skills for data analytics and data-driven strategic insights (42%), and specialist tax technical skills (36%). In response, many companies are changing their hiring strategies to embrace both traditional tax expertise and digital skills. 

This challenge is complicated by the expectation of future hiring freezes or budget constraints, which approximately 53% of respondents expected in the next two years. Many respondents indicated they would try to address the skills shortage through increased use of automation, and 86% say they currently outsource at least one tax process in some form, whether to reduce operating costs (68%), get access to tax technology (67%), or retain operational flexibility (67%).

To read Deloitte’s Tax Transformation Trends 2025 report, please visit: www.deloitte.com/taxtrends.