How artificial intelligence is fully automating a highly regulated transfer pricing process for the first time anywhere in the world. Working with a multinational company, KPMG has reimagined the annual transfer pricing documentation process from start to finish – making it scalable, efficient and compliant with the law. The result: 95% automation, higher quality and full control through a Trusted AI approach with human-in-the-loop.
MAKE UNCERTAINTY TRUSTWORTHY
First
global implementation of fully automated TP documentation using AI
95 %
higher level of automation combined with improved quality
Trusted AI
Framework with human-in-the-loop
Client
Multinational company
Sector
Industry / Group environment
Project goal
End-to-end TP automation
Technology
Trusted AI Framework
Video: Magdalena Bonna & Robert Regendantz explain how KPMG combines tax expertise with AI.
The path to customer transformation
- The task
- Our approach
- The added value
Can AI take over the entire TP process?
The CFO and the Head of Tax posed a key question for the future: Is artificial intelligence already capable of fully automating a highly regulated, complex end-to-end process such as the annual transfer pricing documentation - in a scalable, reliable and compliant manner?
Pioneering work in three steps
KPMG developed an innovative solution based on micro-experiments to identify all relevant technologies. Based on this, it was clearly defined where conventional technologies are used and where AI provides real added value. An intelligent user interface ensures that the human remains in control at all times and safeguards the quality of the results.
Efficiency, trust and new freedom
Thanks to the AI-supported approach, a degree of automation of 95% was achieved - while at the same time increasing the quality of the documentation. The tax team gained valuable time for strategic and value-adding tasks. In addition, the company positioned itself internally as an innovation pioneer in the use of AI.
How we make the difference
For the first time, a highly regulated transfer pricing process was fully automated end-to-end with AI and simultaneously quality-assured. Humans remained in control at all times thanks to a trusted AI architecture, while efficiency and scalability were significantly increased. The result is a solution that brings together innovation, compliance and trust.
KPMG. Make the Difference.
Your contacts
Magdalena Bonna
Partner, Tax, Global Transfer Pricing Services – Head of Center of Excellence for Transfer Pricing Innovation & Technology
KPMG AG Wirtschaftsprüfungsgesellschaft
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Transfer Pricing Automation: Managing transfer pricing more efficiently
Transfer pricing documentation is one of the most challenging tasks within internationally structured groups. Data must be consolidated from various systems, local requirements taken into account, and tax assessments documented in a transparent manner. For CFOs and tax managers, this results in a process that demands a high degree of technical precision whilst also needing to be increasingly scalable.
This is precisely where transfer pricing automation comes in. Through the targeted use of AI, clearly defined control points and a robust database, recurring steps in the transfer pricing process can be handled much more efficiently. What remains crucial is not merely the degree of automation, but the quality of the results. Particularly in highly regulated environments, a solution is needed that creates transparency, documents specialist decisions and deliberately incorporates human oversight.
Combining automated transfer pricing with governance
This client case study demonstrates how automated transfer pricing documentation can be implemented in practice: end-to-end, technology-enabled and using a ‘Trusted AI’ approach that continues to rely on humans as the reviewing authority. This means that AI is not used in isolation, but is embedded within a subject-matter and process-based framework.
This provides management with a robust approach to reducing operational workload and enabling tax teams to focus more on tax management, risk analysis and strategic issues. CFOs benefit in particular from improved traceability, more consistent documentation processes and greater interoperability with existing finance and tax transformations.
We support you in the next phase of development
We are happy to assist you in determining the appropriate maturity level for your transfer pricing automation. To this end, we analyse existing processes, data sources, system landscapes and governance requirements. We then work with you to develop an approach that sensibly combines specialist transfer pricing expertise, the use of technology and internal control mechanisms.
Whether it’s a pilot, scaling up or integration into a more comprehensive tax transformation: We support you with interdisciplinary experts from transfer pricing, tax technology and financial services. This results in a solution that harnesses efficiency potential without losing sight of control and technical robustness.
Ready for a chat? Get in touch.
Frequently asked questions
Transfer pricing automation describes the technology-driven automation of recurring steps in transfer pricing processes, such as data collection, documentation and quality assurance.
AI can structure data, prepare content and speed up processes. However, professional review, governance and approvals remain crucial to ensure that results remain transparent and robust.
This approach is particularly relevant for internationally active companies with complex group structures, high documentation requirements and a desire to manage tax processes more efficiently.