Perspectives

Unleashing the Potential of Generative AI in In-House Tax and Legal Functions

Generative AI is poised to revolutionize in-house tax and legal functions within organizations, offering unprecedented potential for enhanced efficiency, accuracy, and insights. The recent advancements by OpenAI with ChatGPT-4o and Google's updated Gemini multimodal models have pushed the boundaries of AI capabilities, enabling the processing of text, images, and videos with higher reasoning abilities.

Our article delves into the transformative power of generative AI in tax and legal services, highlighting its ability to create human-like text, analyze complex data, and provide intelligent recommendations. At Deloitte Middle East, our development of the internal generative AI platform, Genie, exemplifies the significant advancements and value generative AI can bring to these functions.

Key topics covered include:

  • Real-world applications of generative AI in tax functions such as VAT analysis and compliance with Saudi tax regulations.
  • The role of AI in enhancing transfer pricing by providing comprehensive frameworks for analyzing and documenting intercompany transactions.
  • The challenges associated with data privacy, security, and the need for explainable and transparent AI systems.

The future of in-house tax and legal functions is increasingly digital and data-driven, with AI enabling professionals to become strategic advisors and proactive legal risk managers. Organizations must invest in the right talent, tools, and processes to realize the full potential of generative AI. This includes identifying high-value use cases, developing robust data strategies, investing in explainable AI technologies, and fostering a culture of continuous improvement.

The advancements in generative AI herald a new era for in-house tax and legal functions, presenting opportunities for innovation and disruption. While challenges remain, the strategic adoption of these technologies will enable organizations to thrive in the age of AI, setting new standards for excellence in tax and legal services.

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