IBM and EY introduce EY.ai for tax, utilizing IBM’s watsonx AI technology to enhance global tax compliance. This collaboration aims to automate processes, tackle talent shortages, and streamline data management. Initial solutions include Intelligent Tax Data Lake, Detect and Correct with Business Documents, and Withholding Tax Determinations, all designed to save time and improve outcomes for tax departments.
In a move set to transform the tax compliance industry, IBM and EY have partnered to release EY.ai for tax, powered by IBM watsonx. Announced on May 1, 2025, this collaboration combines IBM’s artificial intelligence technology with EY’s extensive domain experience, aiming to tackle significant challenges tax departments face today. By employing AI, they hope to automate processes, alleviate talent shortages, and streamline data management across various enterprise resource planning systems.
The solutions within EY.ai for tax are built on open-source models like IBM Granite. They are designed specifically to help companies manage their tax compliance more efficiently. “Our professionals are extending beyond world-class tax technical knowledge and combining their experience with emerging technologies that can produce highly effective outcomes for our clients,” said Martin Fiore, EY Americas Deputy Vice Chair – Tax. The objective here is not just improving efficiency, but also shifting the perception of tax from merely administrative to a critical business function that drives value.
Three primary AI-enabled solutions have emerged from this collaboration. First up is the Intelligent Tax Data Lake, which utilizes IBM’s watsonx.data and watsonx.ai to gather and integrate transaction data from various sources for tax filings. For IBM’s own tax operations, this solution creates higher-quality data and eliminates many of the manual tasks involved, consolidating information from an impressive 36 sources.
Next, there’s the Detect and Correct with Business Documents tool, leveraging IBM Research’s Docling. This solution pulls data from unstructured invoices, effectively comparing and correcting ERP data for tax purposes. With it, IBM can significantly increase the volume of documents reviewed, automating processes that were once incredibly tedious and time-consuming.
The last of the trio, Withholding Tax Determinations, automates calculating the correct withholding tax rate for various transactions. With this advanced solution, IBM’s tax team can quickly and accurately evaluate thousands of intercompany transactions. This trio is not just about functionality; they’re saving tens of thousands of hours of work annually for the tax department.
IBM is now primed to potentially surpass its goal of automating 80% of its foreign tax compliance. As they focus on both security and trust, these solutions also strive to protect sensitive tax data, which is crucial to prevent hefty penalties and reputational harm. “We manage massive volumes of granular data from disparate sources to file thousands of tax returns across hundreds of legal entities worldwide,” shared Kanthi Morrissey, IBM’s Vice President and Chief Tax Officer. The innovation here frees the tax team to engage in more strategic work instead of drowning in paperwork.
Both teams at IBM and EY are looking to expand these solutions beyond tax compliance into other tax-related processes. As they refine the current offerings, this partnership points the way to a future where tech and tax work together seamlessly. For more details, you can visit their dedicated webpage.
In summary, IBM and EY are making waves in the tax compliance sector with the launch of EY.ai for tax, powered by IBM watsonx. This suite of AI solutions aims to simplify processes, enhance data management, and shift the tax function’s role towards value creation, not just administration. As other businesses look on, this partnership’s efforts could very well mark the beginning of a new era in efficient, tech-driven tax compliance management.
Original Source: www.prnewswire.com