“GenAI has the potential to revolutionise tax compliance.”

According to a new PwC report, companies are increasingly using generative artificial intelligence (GenAI) to handle tax compliance difficulties in light of substantial digital changes implemented by the government, such as faceless assessments and e-invoicing.
Historically, there has been a discernible delay between the implementation of regulatory requirements and the readiness of organisations to provide the necessary data in a complete and correct manner.

Nonetheless, the PwC analysis said that the complexity of monitoring tax compliances is expected to greatly decrease with the incorporation of GenAI.
The PwC research, according to an article in the Economic Times, shows how GenAI may transform the tax assessment procedure by serving as an intelligent assistant. With the help of this cutting-edge technology, taxpayers may be guided through evaluations while data is properly vetted and presented to the tax authorities.
The research said that “GenAI can serve as a smart assistant in a scenario where a taxpayer goes through an assessment by helping the taxpayer to understand the data requirements, validate the data prepared, and present it in a manner required by the revenue department.”
Furthermore, GenAI has the potential to completely transform how businesses keep up with important court decisions and new legal requirements, which will improve compliance and decision-making.
Regarding the applicability of GenAI across many areas, including tax, accounting, and auditing, tax experts overwhelmingly agreed, according to a noteworthy poll conducted as part of the research. It is anticipated that the use of AI in these domains would improve operational effectiveness, improve mistake detection, expedite transaction categorization, and make it easier to provide tailored tax solutions.
CEO views in India are indicative of the excitement over GenAI; 71% anticipate higher staff productivity and 70% anticipate enhanced performance over the next year as a result of the technology.
Even Nevertheless, there is still some degree of scepticism among financial professionals over GenAI, with many taking a cautiously hopeful approach to its implementation.
These are a few examples of how artificial intelligence is drastically changing the tax compliance industry.Data input, computation, and filing are just a few of the time-consuming, repetitive operations that artificial intelligence (AI) optimises and automates for tax compliance. This saves a great deal of time and money while also lowering human error.
Artificial intelligence (AI) systems are capable of analysing vast amounts of data to spot trends, abnormalities, and possible risk areas, ensuring that companies stay in compliance with tax rules and regulations. This predictive study assists in reducing the likelihood of tax fraud and noncompliance.
Artificial intelligence (AI) improves the capacity of tax authorities and companies to identify fraud and errors in tax returns. Artificial intelligence (AI) may identify unusual transactions that could be signs of fraud or evasion by examining data patterns and discrepancies.
Artificial intelligence (AI) systems can analyse enormous volumes of financial and non-financial data to provide projections and insights that support strategic decision-making. This might include figuring out how to save taxes and making the most of tax planning techniques.
Artificial intelligence (AI) systems may be taught to track changes to tax laws and regulations in various countries. This lowers the possibility of fines for non-compliance by assisting firms in staying current with tax compliance regulations.
AI-powered systems are able to provide firms and individuals tailored tax advice based on their specific financial circumstances and historical tax behaviour. This enhances tax efficiency and facilitates the making of well-informed judgements.
Artificial intelligence (AI)-powered chatbots and virtual assistants may help taxpayers instantly, around-the-clock, by responding to their questions and assisting them with the tax filing process. This enhances the taxpayer experience in general.