The tech-savvy tax professional: The skills you actually need

2026-04-27 · Source: Thomson Reuters Institute · Field: Legal & Regulatory — Legal Technology (LegalTech), Compliance & Risk Management, Specialized Legal Practice Areas · Depth: Novice, medium

Summary

The tax profession is undergoing rapid transformation, demanding new technical skills beyond traditional expertise. A Thomson Reuters Institute report, "2025 State of Tax Professionals Report," indicates that improving efficiency through technology has been the top strategic priority for firms for three consecutive years, with 44% of leaders focusing on it. Furthermore, 47% of tax professionals prioritize AI investment, yet 18% of firms still lack automation. Key skills needed include prompt engineering for AI tools, advanced data literacy (especially spreadsheet proficiency and dashboard creation), and workflow automation for repetitive tasks. The article emphasizes that AI does not replace professional judgment; users remain responsible for verifying AI outputs against primary sources and recognizing limitations. Effective communication of technical work to clients is also increasingly vital as compliance work becomes automated.

Key takeaway

For tax professionals aiming to stay competitive and efficient, prioritize developing practical technology skills like prompt engineering and advanced data literacy. Your ability to effectively use AI tools, automate workflows, and interpret complex data will differentiate your services. Remember that professional judgment remains paramount; always verify AI-generated outputs before client delivery to maintain accuracy and trust.

Key insights

Tax professionals must acquire new tech skills, especially AI proficiency and data literacy, to remain competitive.

Principles

• AI outputs require professional verification.
• Focus skill development on current workflow problems.
• Process analysis identifies automation opportunities.

Method

To improve AI output, specify entity type, jurisdiction, tax year, audience, and format in prompts. For data, master advanced spreadsheet features and dashboard creation. For workflow, analyze repetitive tasks for automation potential.

In practice

• Master prompt engineering for AI tools.
• Enhance advanced spreadsheet proficiency.
• Develop visual dashboards for tax data.

Topics

• Tax Technology Skills
• Prompt Engineering
• AI Judgment
• Data Literacy
• Workflow Automation

Best for: Domain Expert, Prompt Engineer, Operations Professional

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Editorial summary, takeaway, and curation by AIssential. Original article published by Thomson Reuters Institute.