IBM and EY Launch AI-Powered Tax Compliance Solutions

IBM and EY have announced the launch of AI-powered global tax compliance solutions, leveraging IBM's watsonx technology. In a press release, the companies detailed how the new solutions, branded as EY.ai for tax, aim to automate tax compliance and streamline data management across various enterprise resource planning systems.

The solutions utilize open-source AI models, including IBM Granite, to address challenges such as limited resources, talent shortages, and complex regulations. The three initial offerings include the Intelligent Tax Data Lake, which consolidates transaction data for tax filings; Detect and Correct with Business Documents, which extracts and corrects data from unstructured invoices; and Withholding Tax Determinations, which automates the process of determining correct withholding tax rates.

These solutions are already in use by IBM's tax department, reportedly saving tens of thousands of hours annually by automating previously manual processes. The collaboration between IBM and EY aims to transform tax compliance from an administrative function to a value-creating one, while ensuring data security and trust.