Artificial intelligence (AI), and more recently, generative AI (GenAI), is rapidly reshaping the tax function, and Switzerland is no exception. As regulatory complexity grows and the pressure for real-time decision-making intensifies, Swiss tax leaders are facing a critical inflection point. From predictive analytics to intelligent document processing, AI is already streamlining tax compliance, enhancing risk management and uncovering strategic value in tax data.

GenAI further accelerates this transformation, introducing powerful capabilities in natural language processing and automation that are redefining how tax departments operate. With leading tax authorities worldwide already integrating AI into audits and administration, the urgency for Swiss tax functions to act has never been greater. Early adopters stand to gain a significant competitive edge –not just in efficiency, but in strategic influence across the enterprise.

Embrace the future of tax with AI and position your department for success.

Christoph Steiner
Christoph Steiner

Chief Technology Officer, Tax & Legal

KPMG Switzerland

What is GenAI? A simple guide for tax leaders

GenAI is an advanced form of artificial intelligence that creates new content, such as text, code or reports, based on patterns it has learned from large datasets. Unlike traditional AI, which focuses on specific tasks like automation or classification, GenAI uses powerful pre-trained models and natural language capabilities to generate human-like responses.

For tax leaders, this means faster analysis, easier access to complex insights and scalable support for drafting, summarizing and decision-making. GenAI makes AI more intuitive and impactful across the entire tax function.

The value of AI across the tax function

AI in tax is not just about reducing manual tasks – it’s about unlocking strategic value. With AI-driven tax technology, tax teams can improve accuracy, enhance governance and support smarter tax planning. By customizing AI solutions to the unique needs of your tax function, you can stay ahead of the curve and create long-term value in an ever-evolving landscape.

AI is creating tangible impact across all levels of the tax function:

    Personal productivity

     

    Automating routine tasks such as tax document handling and responses to standard queries frees up capacity for professionals to focus on strategic activities.

    Process
    productivity

     

    Tax professionals benefit from faster tax reporting, improved risk assessment and insights into hidden patterns in complex data sets.

    Ecosystem integration

     

    AI supports a more integrated and agile tax environment thanks to seamless connection with financial systems, tax platforms and collaboration tools. 

    Practical use cases for AI in tax

    AI is no longer just a concept; it’s delivering real value in today’s tax departments. From streamlining compliance tasks to enabling data-driven decision-making, Swiss tax leaders are beginning to unlock the practical potential of AI across multiple areas. Some examples include:

          • Automated tax classification

            AI models can classify transactions or expenses according to relevant tax codes with minimal manual intervention.

          • Regulatory monitoring

            GenAI tools can scan and summarize changes in Swiss and international tax legislation in real time.

          • Indirect tax determination

            AI can improve accuracy in VAT calculations across jurisdictions, reducing risk and manual errors.

          • Tax provisioning

            Enhanced data analysis speeds up provisioning processes during closing cycles.

          • AI in accounting services

            Intelligent automation supports reconciliation, ledger management, and anomaly detection, enhancing the accuracy and efficiency of accounting processes that feed into tax workflows.

          • Client or internal query bots

            AI-powered assistants can provide quick, consistent answers to common tax questions.

          • Audit readiness

            AI helps compile supporting documentation and flag anomalies in data ahead of audits.

          The right AI applications for your business not only drive efficiency but also elevate the strategic role of tax within the broader business.

            Strategic benefits of AI for tax teams

            Beyond efficiency gains, AI empowers tax teams to take on a more strategic role within the business and position tax as a forward-looking, value-creating function. By transforming how data is accessed, interpreted and applied, AI enables faster, insight-driven decisions that support broader financial and operational goals.

            Tax leaders can proactively identify risks and opportunities, improve compliance confidence and deliver deeper business insights in real time. With AI handling routine tasks, teams can shift their focus to advisory work, scenario planning and collaboration with finance and leadership. 

              A holistic roadmap for AI adoption in tax

              Adopting AI in tax requires a structured approach to ensure long-term success. A clear roadmap helps align AI initiatives with business goals while fostering scalable and impactful tax function transformation.

              Here are the essential steps:

              • Defining an AI vision and strategy

                Establish a clear AI vision that is closely aligned with tax function goals like enhancing compliance, driving efficiency and supporting broader business strategies. A strong digital tax strategy ensures alignment across teams and sets clear objectives for AI adoption.

              • Identifying and prioritizing use cases

                Focus on high-impact areas where AI can drive the most value, such as automating routine tasks or improving risk assessment. Prioritize use cases based on their potential to reduce manual work and add strategic value to the business.

              • Developing AI agents or personas

                Design user-friendly AI agents that integrate into daily tax workflows. These could be automated assistants for answering queries or managing tasks, enhancing collaboration between AI systems and tax professionals.

              • Ensuring data readiness and governance

                Holistically organize, cleanse and structure your data to ensure it’s ready for AI use in the tax function. Implement robust governance to ensure compliance with data privacy and integrity standards, particularly in regulated environments like Switzerland.

              • Integrating AI into business processes for scalable impact

                Seamlessly integrate AI into your existing systems and processes landscapes, connecting it with financial platforms and reporting tools. This enables AI to scale across the tax function, driving efficiency, collaboration and real-time decision-making.

              Five key actions for AI success in tax

              To successfully integrate AI into the tax function, tax leaders must take strategic, thoughtful steps to ensure long-term success.

              We have identified five key actions to guide that transformation:

                    1. Establish structured AI governance

                     

                    Implementing AI in tax requires a robust governance framework to oversee its integration, ethical use and alignment with regulatory standards.

                    Clear accountability structures, policies and processes for data management, privacy and AI-driven decision-making must be in place.

                    Governance ensures that AI applications are compliant with Swiss and global tax regulations, while also maintaining transparency and fairness in automated outputs.

                    2. Build AI skills and capabilities within the team

                     

                    As AI becomes an integral part of tax operations, it’s critical for teams to have the right skills to harness its full potential. Besides training for existing staff, organizations will need to define a new strategic AI role and foster a culture of continuous learning.

                    Upskilling in areas like data analysis, AI interpretation and automation will empower tax professionals to collaborate with AI tools effectively and make informed decisions. Upskilling in areas like data analysis, AI interpretation and automation will empower tax professionals to collaborate with AI tools effectively and make informed decisions.

                    3. Define and prioritize clear use cases

                     

                    Not all AI applications are suitable for every aspect of tax operations. Tax leaders must identify and prioritize specific, high-impact use cases where AI can drive tangible value for their business, e.g. automating routine compliance tasks, enhancing risk assessment or streamlining reporting processes.

                    Prioritizing the right areas will ensure that AI implementation is focused and aligned with business objectives, delivering measurable results. Governance ensures that AI applications are compliant with Swiss and global tax regulations, while also maintaining transparency and fairness in automated outputs.

                    4. Optimize tax-relevant content for AI use

                     

                    AI thrives on high-quality, structured data – whether that’s legislation, case law or transactional data. To get the most out of AI, tax functions must ensure that the content they work with is properly organized and optimized for AI processing.

                    This might involve digitizing paper records, normalizing datasets and structuring information in ways that AI models can easily access and interpret.Upskilling in areas like data analysis, AI interpretation and automation will empower tax professionals to collaborate with AI tools effectively and make informed decisions.
                     

                    5. Invest in secure, future-proof AI technology and platforms

                     

                    To ensure long-term success, tax teams must choose secure and scalable AI technology platforms that can evolve with the rapidly changing AI landscape.

                    Future-proofing involves selecting tools that are flexible enough to integrate with new and existing financial and tax systems. They should also offer robust security features, and adapt to new technological advancements. Investing now in the right platforms will pay dividends in supporting AI growth and ensuring tax compliance as regulations and technologies evolve.

                    Empower your tax function with AI – start your journey with KPMG

                    Discover how KPMG Switzerland helps tax leaders unlock the full potential of AI in tax. From strategic tax planning to scalable implementation, we provide trusted expertise, proven frameworks and secure technology solutions to guide your transformation.

                    Meet our expert

                    Christoph Steiner
                    Christoph Steiner

                    Chief Technology Officer, Tax & Legal

                    KPMG Switzerland