Corporate tax teams eager for AI, but frustrated by pace of change, new report shows

2026-03-16 · Source: Thomson Reuters Institute · Field: Finance & Economics — FinTech & Digital Financial Services, Corporate Finance & Treasury · Depth: Intermediate, quick

Summary

The "2026 Corporate Tax Department Technology Report" from Thomson Reuters Institute and Tax Executives Institute reveals a significant "frustration gap" among in-house tax professionals. While many are eager to adopt new tax technologies, especially AI-driven tools, and recognize the potential for more strategic work through automation, their organizations are slow to prioritize technology upgrades. The report, based on a survey of 170 tax leaders, indicates that tax professionals now expect AI to be central to their workflows within one to two years, a much faster timeframe than previously anticipated. Despite this eagerness, fewer than half of departments received budget increases last year, and many faced cuts, hindering investment in necessary technological infrastructure. Companies that fail to invest risk falling behind more tech-savvy competitors.

Key takeaway

For tax leaders evaluating technology roadmaps, the report highlights a critical need to accelerate investment in AI and automation. Your department's ability to shift to proactive, strategic work is directly tied to robust technological infrastructure. If your organization delays, you risk falling behind competitors who are already leveraging advanced tools, potentially impacting efficiency and strategic positioning. Advocate for increased budget and resources now to bridge the "frustration gap" and meet evolving expectations.

Key insights

Corporate tax professionals are frustrated by slow tech adoption despite high expectations for AI and automation.

Principles

• Automation enables strategic tax work.
• Budget constraints impede technology adoption.
• Early tech investment prevents competitive lag.

In practice

• Prioritize AI integration in tax workflows.
• Allocate dedicated budget for tax technology.
• Invest in infrastructure to support advanced tools.

Topics

• Corporate Tax Technology
• AI Adoption
• Tax Automation
• Digital Transformation
• Budget Constraints

Best for: Business Analyst, Consultant, Executive

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