Tax departments are increasingly turning to artificial intelligence

• AI already established: 71 percent of tax departments use AI tools, and another 19 percent are actively preparing to implement them
• Measurable efficiency gains: 66 percent of AI users report noticeable time savings
• Stable headcount: 58 percent of companies expect domestic tax department headcount to remain constant, while 72 percent expect the same for their international operations

Berlin, May 7, 2026
 

Artificial intelligence is rapidly making its way into tax departments and transforming tasks and processes. This is shown by two recent KPMG quick surveys on the future of tax departments. According to the surveys, tax departments aim to use AI primarily to become more efficient and improve the quality of their day-to-day operations. With regard to workforce development, most companies expect stable headcounts in their tax departments: 58 percent anticipate constant employee numbers domestically, and as many as 72 percent abroad.

71 percent of the companies surveyed are already using AI tools, and another 19 percent are actively preparing to implement them. Both company-wide standard solutions (89 percent) and, increasingly, specialized applications for tax-related issues (29 percent) are being used. Use cases range from researching and processing tax information to analyzing large volumes of data, as well as providing support for documentation, reporting, and standardized compliance processes. AI is primarily used where tasks are highly rule-based, data-intensive, or particularly time-consuming.

66 percent of AI users report noticeable time savings, and more than half (57 percent) report generally positive effects on their daily work. Accordingly, companies expect this trend to intensify in the coming years: 93 percent anticipate growing automation and digitization, while 90 percent expect increased use of generative AI. In addition to AI adoption, companies are focusing on organizational efficiency levers: 40 percent of respondents expect increased use of shared service centers, while half (50 percent) anticipate stable development. 

At the same time, it is clear that the further expansion of AI is tied to specific prerequisites. Among the biggest hurdles are IT approvals (47 percent), data protection requirements (41 percent), and a lack of knowledge regarding the use of AI applications (41 percent).