The EY 2026 Tax and Finance Operations Survey shows how tax and finance functions are shifting from AI experimentation to expectation, with leaders focused on how to generate measurable value. At the same time, geopolitical pressure and increasingly digital, real-time tax administration are raising the stakes, with the majority of organizations adapting operations and nearly two-thirds (64%) not fully prepared for real-time tax demands.
However, despite strong ambitions to scale AI across finance, the survey of 1,600 CFOs and senior finance and tax leaders across 30 jurisdictions finds that weak data foundations and legacy operating models remain key barriers to progress.
Data challenges hold back AI adoption
While enthusiasm for AI remains high, many organizations continue to face significant barriers in preparing their data environments for large-scale adoption. Insufficient AI-ready data was cited as the greatest barrier to advancing AI initiatives, according to 64% of respondents. Only 16% of those surveyed consider their tax function highly effective at accessing, organizing, using and reusing data. Among those who say their function is not effective with data, 61% cite data silos and 52% report poor data quality as key obstacles.
Forty-three percent of respondents cite the inability to execute a sustainable data, AI and technology strategy as the biggest challenge to delivering their function’s purpose, by far the biggest challenge identified in the survey.
Marna Ricker, EY Global vice chair–tax, says: “Many organizations have already invested in AI. The challenge is transforming their data, governance and talent capabilities to ensure they get return on their AI investments. As AI becomes embedded in business decision-making, ambition alone will not be enough. Tax leaders are having to be deliberate in how their function creates value for the wider organization and have an opportunity to use trusted data, knowledge, AI, and human judgment to unlock capital.”
Organizations prepare for an agentic workforce
As tax and finance functions seek to move from AI experimentation toward execution, leaders are rethinking how technology, talent and external capabilities work together. Expectations have shifted quickly: 77% of respondents now expect AI agents to benefit the tax function, up from 21% a year ago. Yet 71% remain at a completely nascent or exploratory stage of maturity.
Organizations are preparing their workforces for an AI-enabled future. More than four in five respondents (83%) say building an agentic workforce is important, while 81% emphasize the need to hire professionals with AI-related skills. Yet leaders are equally clear that AI will augment, not replace, human expertise. Sixty percent rank strategic thinking and problem-solving among the five most critical skills for future tax professionals, reinforcing the need for human judgment, oversight and decision-making alongside increasingly automated processes.
Stuart Lang, EY Global tax and finance operate leader, says: “The future tax function won’t separate compliance from insight. Every filing and reconciliation generates trusted data and knowledge that, combined with AI and human judgment, can become a source of tax intelligence for the business. Realizing that potential will require leaders to make deliberate choices about workforce and talent priorities, investing not only in technology but in people skills and culture. Organizations that upskill their teams, build trusted data through strong governance and choose the right external providers will be better positioned to turn AI ambition into sustainable value.”
Geopolitical pressure continues to influence organizational change
Geopolitical developments continue to reshape tax and finance priorities, with 79% of organizations adapting operations in response. The findings point to a growing need to connect tax strategy with wider finance and business decisions as leaders navigate continued change.
Organizations are also looking for capacity and capabilities beyond their internal teams. Among those already using co-sourcing, 86% report a greater ability to focus on higher-value activities, 78% report improved tax risk management, and 77% report greater success navigating legislative and regulatory change.
See the survey: https://www.ey.com/en_gl/insights/tax/tfo-survey
Sign in to get access to this free resource, and all of our whitepapers and reports.
Download this content today!
Register Now Already registered? Click here to Log In
