AI Advancements Transforming ERP Systems and Tax Compliance

As I mentioned in a recent post, the pace of ERP cloud migrations is accelerating this year due to several factors. One of those drivers is the availability of new AI functionality in cloud-based ERP systems and other applications in ERP ecosystems.  

For example, Oracle Cloud Infrastructure (OCI) Generative AI Agents can help finance and sales teams gain insights into customer purchase history and trends by using natural language questions instead of running reports. Other OCI AI agents may increase customer satisfaction through more accurate responses and higher volumes of query resolution. (Oracle also offers an in-depth primer on AI agents, which includes examples and best practices, here.) 

Of course, AI capabilities are also available to tax groups via cloud-based solutions. In this way, cloud-based automation can help free tax professionals to focus on higher-value activities. When evaluating migration options, tax leaders should consider how AI capabilities can transform their department's operations and effectiveness. 

Some tax groups have notched impressive progress on their AI journeys, as I learned during a recent Vertex webinar, Transforming Indirect Tax Compliance with AI. The webinar covered some compelling AI tax compliance use cases (including product categorization, anomaly detection and accelerated tax reporting among others). The discussion also featured thoughtful takeaways for indirect tax leaders considering how to leverage AI tools and functionalities to strengthen tax compliance, including:  

• Data governance is critical for AI success: Strong tax data governance ensures accurate and consistent data, which is essential for AI tools to function properly. Poor data quality can undermine AI implementation and create compliance risks. (I like to point out that data is the foundation of everything we’re doing with AI at Vertex.)
• Pairing AI tools with strong data governance yields other benefits: Clean, structured data also enhances tax reporting, e-invoicing compliance (for the growing number of companies subject to those mandates) and audit preparedness.
• AI can help refocus indirect tax professionals on higher-value activities: The additional levels of automation and optimization AI delivers further reduce how much time tax groups need to spend on manual, repetitive activities.  

A forthcoming Vertex white paper will delve into these practices and AI tax use cases in more detail.  

PLEASE REMEMBER THAT THE VERTEX BLOG PROVIDES INFORMATION FOR EDUCATIONAL PURPOSES, NOT SPECIFIC TAX OR LEGAL ADVICE. ALWAYS CONSULT A QUALIFIED TAX OR LEGAL ADVISOR BEFORE TAKING ANY ACTION BASED ON THIS INFORMATION. THE VIEWS AND OPINIONS EXPRESSED IN THE VERTEX BLOG ARE THOSE OF THE AUTHORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY, POSITION, OR OPINION OF VERTEX INC. ⁠