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Understanding the Shift: The Role of Agentic AI in Corporate Tax
In a climate where corporate tax departments wrestle with ever-increasing pressures, the need for innovative solutions has never been more urgent. As organizations grapple with OBBBA provisions, compliance complexities, and resource limitations, many are turning to agentic AI as a game changer in navigating these challenges. This advanced form of artificial intelligence not only promises efficiency but also aims to redefine how tax professionals operate in a rapidly evolving landscape.
The Challenges Tax Departments Face
Corporate tax departments are at a crossroads. A staggering 51% report feeling under-resourced, while 61% spend a majority of their time on tactical rather than strategic tasks, according to the 2025 Future of Professionals Report (FoP Report). Coupled with a mounting data overload and an increasingly complex regulatory environment, these factors create a "perfect storm" that compels tax teams to seek smarter solutions. Now, more than ever, is the time for a profound transformation.
What is Agentic AI, and Why is it Important?
Agentic AI dynamically addresses the intricate challenges facing tax professionals. Defined as AI systems capable of perceiving, reasoning, and acting toward specific goals with minimal human intervention, agentic AI stands apart from traditional automation tools. It adapts to changing rules and multiphasic processes, allowing tax experts to refocus on high-level strategic work rather than spending hours on manual data analyses. Research that once took an entire day can now be completed in a matter of minutes, fundamentally enhancing productivity.
Tax professionals hold AI to a high standard—91% expect AI outputs to exceed the accuracy of human work. Thomson Reuters’ agentic AI solution is built on a foundation of authoritative editorial content and expert analysis, elevating the trustworthiness of its outputs compared to conventional AI tools. In essence, agentic AI reorganizes the operational fabric of tax departments and facilitates better decision-making.
The Transformation of Tax Departments
Implementing agentic AI is not merely about technology adoption; it's a re-imagination of how tax functions operate. By integrating a four-pillar framework—AI literacy, scalable knowledge management, process optimization, and strategic investment in automation—tax departments can enhance their capabilities. This approach leads to faster compliance, greater accuracy, and reduced reliance on external consultants.
Looking Forward: Future Predictions and Trends
As AI continues to evolve, the landscape for corporate tax will dramatically change. In the next five years, about 80% of tax professionals anticipate a transformative impact from AI in their work. However, only 22% of organizations currently possess a visible AI strategy, highlighting a considerable gap that represents both risk and opportunity.
Tax leaders must embrace this frontier, fostering a continual evolution from not just compliance roles to becoming strategic partners within their organizations. The future of tax isn’t just about surviving a complex regulatory environment; it’s about leveraging technology like agentic AI to thrive amidst uncertainty.
Taking Action: Incorporating Agentic AI
To harness the benefits of agentic AI, organizations should initiate this transformative journey by fostering an innovative culture. Tax departments need to engage with technology like agentic AI proactively, ensuring they do not fall behind in an increasingly competitive landscape. The first step is essential: understand what’s possible and align your operational strategies accordingly to make the most of available AI resources.
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