GenAI can be a gamechanger for tax compliance: PwC study

As the government is pushing major digital changes such as faceless assessments, e- invoicing and holistic tax assessment, businesses are relying more on Generative Artificial intelligence (genAI) to meet their tax compliance, a latest study by PwC revealed.

At present, there is usually a time gap between the specific regulatory requirements and readiness of an organisation to be able to correctly furnish large amounts of data at the outset. With GenAI, managing complex tax compliances can become easier, it noted.

“In a scenario where a taxpayer goes through an assessment, GenAI can serve as a smart assistant by helping the taxpayer to understand the data requirements, validate the data prepared and present it in a manner required by the revenue department,” the study report said.


The report added that GenAI can help organisations continuously monitor the landscape for the latest laws and regulations. It will also allow them to keep track of important judgements in high courts and the Supreme Court.

Citing a recent survey, conducted by the PwC, the study said that nearly three-quarters of tax professionals agreed that GenAI can be applied to tax, accounting and audit work.

“Embracing AI can empower tax professionals to streamline operations, detect errors, classify transactions, and offer clients tailored tax solutions,” the report said.

Around 71% of India CEOs expect GenAI to increase employee efficiency over the next 12 months, while 70% believe it will improve their own performance, the study said.

However finance professionals still view the technology with some scepticism.

“Many are ‘open-minded but cautious’ about its use,” it added.