Global taxation and financial advisory leader EY has announced that is applying technology to tax with the launch of an Advanced Technology Tax Lab.
Set to be the first in a global network of tax technology labs, it will apply emerging technologies such as blockchain, data analytics and artificial intelligence (AI) to the world of taxation to produce new solutions and solve problems.
For EY, it is an opportunity to disrupt a field that has largely remained unchanged in the modern era.
“The EY Advanced Technology Tax Lab is a key driver of the EY tax technology strategy, helping companies to future-proof their tax departments and serving as a strong voice in the tax community to redefine the type of work that tax professionals do best,” said Kate Barton, EY global vice chair for tax.
“The Tax Lab will attract leading computer scientists to achieve technology breakthroughs and incubate new solutions, forging and extending the EY commitment to exceptional client service.”
MIT and EY partner on tax technology lab
In order to developed the EY Advanced Technology Tax Lab, the company has collaborated with the Connection Science group at Massachusetts Institute of Technology (MIT).
This is being led by the faculty director of the MIT Connection Science group, Alex ‘Sandy’ Pentland, who is also the faculty director of MIT’s Human Dynamics group and one of the most-cited scientists in the world.
Pentland will work with EY to produce a “collective intelligence” for the world of taxation, by examining how people and computers interact to determine how technology can improve the effectiveness of tax professionals.
“Traditionally the tax profession has not been deeply involved in solving problems through rapid testing and iteration, but it is now quickly adapting to the digital world around us all,” said Pentland.
“We have seen the impact technology and rapid innovation can bring to other fields and are bringing the same scientific approach to tax.”