For the next episode in the Future of Tax series, Ewen Burns and Josh Burns, spoke with Hayley McKelvey and Steffan Adfeldt, Tax Partners and AI experts at Deloitte, about how AI, global reform and data are reshaping tax advisory. As automation transforms compliance, the profession is shifting toward real-time insight, strategic risk management and higher-value, forward-looking advice, with new skills required at the intersection of tax, technology and judgement.
Once defined largely by compliance cycles, technical interpretation and retrospective reporting, the profession now stands at a pivotal inflection point – where automation, generative AI and real-time data are redefining both the nature of the work and the value advisors deliver.
To explore what this transformation means in practice, we sat down with Hayley McKelvey and Steffan Adfeldt, Tax Partners and AI experts at Deloitte. From the evolution of compliance and the rise of AI-enabled advisory, to global tax reform, ESG pressures and the future skills tax professionals will need, they offer a clear-eyed view of a profession in transition.
Their message is unequivocal: as large language models embed themselves into domain-specific workflows, tax advisory is moving up the value chain. The future will be less about processing information and more about interpreting it – less about defending past positions and more about anticipating risk, enabling resilience and delivering measurable, forward-looking outcomes.
Over the next five years, tax advisory will continue to shift as technology, regulation and the global macro-economic environment impact the profession. Generative AI and digitalisation are introducing efficiencies to much of what was once specialist work, making tax more accessible and changing the advisor–client dynamic.
As large language models move down the stack into vertical, domain-specific workflows, the role of the tax advisor will change. The value advisors bring will be further elevated, shifting toward insights based on real-time data, contemporaneous impact assessments, and a move towards dealing with matters proactively – for example, avoiding disputes rather than defending them.
At the same time, increased regulatory complexity and the growing use of complex data and AI by tax authorities place greater emphasis on risk management. Advisors play a critical role not only in leveraging AI to deliver higher-impact outcomes, but also in helping organisations navigate uncertainty and make informed decisions about risk and the responsible use of AI.
Compliance remains essential within the tax system. Organisations may increasingly seek to move more of the compliance burden to advisors so they can benefit from economies of scale in technology and AI. This allows organisations to extract powerful data insights from AI-enabled compliance operations and push tax further up the value chain.
The nature of compliance obligations is also changing quickly and unevenly across geographies – e-invoicing being a clear example. Deloitte focuses on working with clients to navigate the complex global compliance landscape while adding value through AI.
Strategic advisory is critical and not mutually exclusive to compliance. Deloitte takes a holistic view across both areas. AI fundamentally expands what is possible in professional services, and Deloitte is actively investing in technology, developing AI-enabled tools, and building domain-specific applications that support complex tax areas rather than relying on generic solutions.
Automation, data analytics and AI are having the greatest impact. Many repetitive tasks in reporting and compliance can now be automated, freeing time for higher-value work.
Generative AI is particularly significant because it is beginning to encroach on tasks previously considered the preserve of humans. While this shift is still nascent, it will accelerate as technology matures, data readiness improves, and trust develops. At this inflection point, tax advisors will be able to fundamentally change how they add value.
Generative AI is changing not just how advice is delivered, but what advice looks like. In the short term, it supports analysis, accelerates research and improves consistency. Over time, it will enable entirely new forms of advisory services.
Adoption will evolve from optimising existing processes, to focusing on outcomes rather than processes, and ultimately to changing the outcomes themselves. As this progression occurs, the nature of advice and client interactions will also transform.
Two forces are at play. Automation drives efficiency, while the burden on tax professionals continues to increase due to the volume and complexity of global regulation.
As a result, roles are shifting rather than disappearing. Junior professionals spend less time on manual processing and more time on interpretation, complex analysis and stakeholder interaction.
To enable this shift, training and trust are essential. Junior professionals must learn how to work effectively with AI, understand its limitations, and know when to challenge its outputs. Without this capability and confidence, the technology cannot deliver value.
Global reforms such as OECD Inclusive Framework Pillar Two are having a profound impact on how businesses structure themselves and plan for the future.
The advisory opportunity lies in helping clients navigate ongoing rule changes, manage compliance obligations and understand broader strategic implications. These reforms continue to evolve, creating sustained demand for high-quality advisory support.
Multinational clients face an uneven regulatory landscape, with jurisdictions progressing at different speeds – particularly in digital tax administration, e-invoicing and real-time reporting.
This fragmentation creates complexity and risk. Organisations must respond both to advanced and lagging fiscal authorities, and advisors play a critical role in helping manage this complexity while still driving efficiency and insight.
The role of the tax function is broadening significantly. ESG is becoming inseparable from tax strategy, with increasing expectations around transparency of tax contributions, incentives and sustainability.
Tax policy is also being used more actively to influence behaviour through incentives, environmental taxes and social measures. Advisors must help clients align tax strategy with broader ESG commitments, not just meet compliance requirements.
Deep technical tax knowledge remains essential, but it is no longer sufficient on its own. The most sought-after professionals operate at the intersection of technology, data, tax expertise and sector knowledge.
Tax professionals must understand how technology shapes outcomes and apply judgement in complex and uncertain environments. Systems thinking – understanding how tax fits within the broader organisation and economy – is increasingly important.
Attracting talent requires flexibility, trust and a compelling development proposition. This goes beyond hybrid working to offering varied, meaningful career paths.
Firms must also address perception. Tax is often misunderstood as narrow or purely technical, when in reality it sits at the heart of how economies function and how businesses operate responsibly in a global environment.
Build strong technical foundations and layer them early with technology fluency. Seek varied experience, prioritise learning and maintain strong ethical judgement.
Just as importantly, look after yourself. The profession can be demanding, and sustainable success requires balance. Invest in relationships and networks – they matter as much as knowledge.
Clients increasingly expect near real-time insight rather than retrospective reporting, and AI enables this. While regulatory systems still impose delays, technology allows organisations to model outcomes, anticipate issues and avoid controversy earlier.
The expectation is no longer just accuracy, but also foresight.
Yes. Clients want joined-up advice that reflects how decisions are made in practice. Tax does not operate in isolation, and integrated advisory is becoming the norm rather than the exception.
Previously, value was measured largely in efficiency and technical delivery. Today, value is defined by insight, scalability, resilience and data-led, measurable outcomes.
Clients want advice that reduces uncertainty, withstands scrutiny and enables better strategic decisions. As answers become increasingly automated, value lies in judgement, accountability and trust.
Clients also seek confidence – confidence that decisions are defensible, aligned with business objectives, and resilient under regulatory scrutiny. They want advisors who help elevate the value tax brings to their organisation while supporting responsible taxpayer behaviour.
In summary, we believe the future of tax advisory will be defined by advisors who operate at the intersection of data, technology, technical expertise, and deep client context. These professionals will amplify their capabilities beyond traditional human constraints, leveraging advanced tools to shift from retrospective analysis to forward-looking, strategic insight. Ultimately, their value proposition will be increasingly tied to measurable outcomes, demonstrating clear, quantifiable impact for their clients.
If you would like to take part in the Future of Tax discussion series, get in touch and let’s explore a conversation from your perspective.
