The tax compliance sector is poised for a significant transformation as agentic AI adoption among organizations is expected to rise from 15% today to a projected 77% by 2030. This change will not only enhance operational efficiency but also redefine the strategic role of tax professionals in the future.
At present, tax professionals spend 56% of their time on reactive tasks, including VAT filings and sales tax reconciliations. This emphasis on routine compliance work limits their ability to contribute strategically, with many aiming to increase that contribution to 70%. With 58% of tax departments indicating they are under-resourced—up from 51% the previous year—the need for a solution is evident. Agentic AI could serve as that solution, providing a means to streamline workflows and boost capacity without relying on more staff or outsourcing.
Agentic AI operates by coordinating workflows across various systems, effectively removing manual reconciliation processes and addressing compliance gaps. This technology is currently being used in about 15% of organizations. As tax leaders face the growing demands of regulations and the need for operational efficiency, the focus has shifted. The question is no longer whether to adopt AI, but how quickly it can be implemented while ensuring safety and governance.
For indirect tax professionals, the stakes are particularly high. Their work is inherently transactional, involving complex compliance requirements across multiple jurisdictions while still needing to make strategic contributions. The 2025 State of the Corporate Tax Department report underscores this widening gap, indicating a need for a more intelligent approach to tax compliance. Integrating agentic AI into indirect tax processes could help departments manage the increasing workload while enhancing strategic input.
However, many existing AI agents are not well-suited for the complexities of indirect tax compliance. The technology must be adapted to effectively handle the nuances of tax regulations. Therefore, establishing governance for AI in this context is essential. Tax departments will need to create frameworks that ensure compliance processes can keep up with AI’s rapid pace, balancing innovation with oversight.
As the tax compliance landscape shifts with the emergence of agentic AI, tax professionals will find themselves navigating the intersection of tradition and technology. The transition to AI-driven workflows presents a significant opportunity for tax departments, but it also brings new challenges. The central question remains: how quickly can organizations implement these solutions while upholding the integrity and compliance necessary in tax operations? The answers will shape the future of tax compliance in the coming years.
Quick answers
What is agentic AI?
Agentic AI refers to artificial intelligence systems that can autonomously perform tasks and manage workflows across various functions within an organization.
How will agentic AI impact tax compliance?
Agentic AI is expected to streamline tax compliance processes, reduce the burden of manual tasks, and allow tax professionals to focus more on strategic contributions.
What are the current challenges faced by tax departments?
Tax departments face challenges such as being under-resourced, spending too much time on reactive tasks, and needing to adapt to increasing regulatory demands.
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