IBM and EY Launch AI-Powered Platform to Revolutionize Global Tax Compliance

IBM and the EY organization have teamed up to introduce an innovative artificial intelligence solution aimed at transforming how companies handle global tax compliance. The new platform, called EY.ai for tax, leverages IBM’s cutting-edge watsonx AI technology combined with EY’s extensive tax expertise to automate and streamline complex tax processes.

IBM and EY unveil AI platform to transform global tax compliance

Transforming Tax Compliance with AI

EY.ai for tax is designed to improve the efficiency, accuracy, and speed of tax compliance activities. At its core, the platform uses IBM watsonx.data and watsonx.ai to build an Intelligent Tax Data Lake—consolidating and enriching transaction data from multiple disparate sources. This allows for more reliable and timely tax filings by providing a unified, comprehensive view of tax-related information.

Another key feature is the AI-powered capability to Detect and Correct information in business documents. The system can extract data from unstructured invoices and validate it automatically, significantly reducing manual errors and operational overhead.

Additionally, the platform automates Withholding Tax Determinations, calculating monthly withholding tax rates across jurisdictions to ensure compliance with evolving tax laws and regulations.

Real-World Impact and Future Potential

Currently deployed within IBM’s own tax department, EY.ai for tax has already shown impressive results. The company is on track to automate 80% of its foreign tax compliance processes, integrating data from 36 different sources while maintaining stringent security and trust protocols to safeguard sensitive information.

This collaboration highlights the growing role of AI in enhancing productivity in complex business areas such as tax compliance. By harnessing artificial intelligence, organizations can navigate regulatory challenges with greater agility and precision, reducing risks and operational costs.

Looking Ahead

With EY.ai for tax, IBM and EY are setting a new standard for tax technology solutions worldwide. The platform promises to help businesses reduce the burden of tax compliance while improving accuracy and freeing up resources for higher-value work.