CHIEF finance officers and leading tax authorities in Southeast Asia are using artificial intelligence (AI) and other advanced data tools to help their organizations cope with rising geopolitical tensions, regulatory changes and talent shortages, according to the latest Tax and Finance Operations (TFO) Survey released by auditing services network EY (Ernst & Young).
“We see more companies embracing transformation and automation ... to stay competitive and agile in the fast-changing regulatory and economic environment,” EY Asean Tax and Finance Operate Leader Elaine Yeo said.
The survey showed that 95 percent of tax leaders in the region are prioritizing the use of data, generative AI and other technologies to support innovation, predictive analytics and automated reporting.
Respondents expect these technologies to improve the effectiveness of tax and finance functions by about 30 percent over the next two years, and potentially free up as much as 24 percent of budgets that can be redirected to higher-value strategic activities.
More than eight in 10 survey respondents globally, and 89 percent in the region, said they are planning moderate to major changes to their business operations over the next two years.
These changes include adjustments to supply chains and other core processes, as companies try to manage uncertainty linked to geopolitical tensions, shifting trade policies and evolving tariff regimes, the study said.
“In the Philippines, organizations of all sizes — including regulators — are rapidly adopting technology, particularly AI, to modernize and strengthen core functions,” SGV Internal Tax Leader Aaron Escartin said. “These tools now support tax filings and compliance, financial reporting, accounting automation, payroll, and risk management.”
AI should not be viewed as a threat, but rather as an enabler that makes lives easier and supports better work-life balance, Escartin said.
“For today’s workforce, work-life balance is especially important, and technology plays a valuable role in helping achieve this by reducing manual workloads and improving efficiency,” he explained.
However, technology alone is not enough, and organizations must ensure proper coordination and collaboration among teams to fully maximize its benefits and integrate technology into everyday operations, Escartin added.
Obstacles
Many organizations still face obstacles, with 65 percent of respondents saying their biggest barrier is the inability to develop a sustainable plan for data, AI and technology.
In addition, more than half of tax and finance departments in the region are still in the early stages of developing mature data management systems, which limits their ability to fully use AI.
As a result, companies are turning to external partners for support, with 91 percent of Southeast Asian respondents saying that working with third-party providers that have strong AI capabilities will significantly benefit their tax functions in the next two years.
Talent shortages are also reshaping the tax and finance workforce, with 61 percent of respondents expecting the retirement of senior tax professionals to significantly affect their operations, while 66 percent believe the declining number of new accountants entering the profession will create additional challenges in meeting future talent needs.
Currently, tax professionals spend more than half of their time on routine work, and many want to reduce this significantly so they can focus on more specialized and strategic tasks.
To address these gaps, companies are investing in new skills and technology-focused roles.
Some 80 percent of respondents said they are prioritizing the hiring of data scientists and tax technology specialists, while 70 percent are investing in upskilling and reskilling their existing workforce.
Yeo said the role of tax and finance departments has evolved in recent years. Rather than simply handling compliance and reporting, these functions are now becoming strategic partners that contribute to broader business transformation.
Professionals in the field will need digital skills, critical thinking and adaptability to succeed, as the role of finance and tax continues to expand in a technology-driven business environment, Yeo added.
