IBM and the EY Organization Debut AI–Powered Global Tax Compliance Solutions

May 2025 — IBM and the EY organization have announced a major milestone in their multiyear alliance with the launch of EY.ai for Tax, powered by IBM watsonx. This AI-driven solution is designed to help tax departments tackle complex challenges such as limited resources, fragmented ERP systems, talent shortages, and ever-changing regulations.

Built on open-source AI models, including IBM Granite, EY.ai for Tax empowers organizations to automate tax compliance processes and streamline global data management. The solutions are currently live within IBM’s own tax department, delivering significant productivity gains while upholding governance and trust.

Martin Fiore, EY Americas Deputy Vice Chair – Tax, commented,
“We’re transforming tax from a traditional administrative function to a strategic, AI-enabled value driver for businesses.”

Key AI-Enabled Tax Solutions:

Intelligent Tax Data Lake
Uses watsonx.data and watsonx.ai to consolidate, enrich, and validate data from multiple sources, improving data quality and automating tax data management.

Detect and Correct with Business Documents
Employs IBM’s Docling toolkit and watsonx.ai to extract and reconcile data from unstructured invoices, enhancing ERP accuracy for tax determinations.

Withholding Tax Determinations
Automates monthly processes for applying the correct withholding tax rates to intercompany transactions, increasing both speed and accuracy.

These solutions have already helped IBM automate thousands of hours of manual tax processes, with a goal of automating 80% of its foreign tax compliance activities.

Kanthi Morrissey, IBM Vice President and Chief Tax Officer, noted, “By combining EY’s tax expertise with IBM’s AI capabilities, we’ve revolutionized how we manage tax compliance globally — allowing our teams to focus on more strategic priorities.”

The EY and IBM alliance continues to innovate, with plans to expand these AI solutions into additional tax processes, ensuring future-ready, scalable compliance strategies for organizations worldwide.

Source: Newsroom.ibm

Voice of Osiz

We see the launch of EY.ai for Tax, powered by IBM Watson, as a defining moment in AI-driven enterprise transformation. Our experts believe turning tax functions into strategic, AI-enabled value centers is a bold and necessary shift. It’s encouraging to witness open-source AI models delivering tangible impact, and we’re closely following how this sets new benchmarks for intelligent, scalable tax compliance.