AI-Driven Transformation of Tax Practices in India: A Study on Automation, Risk-Aware Compliance, and Future-Readiness in CA Firms
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Abstract
This research study explores the transformation of tax practices through AI technologies in India. The main areas of interest are automation, risk-aware compliance, and future-readiness of Chartered Accountant (CA) firms. The study employs a mixed-method approach and focuses on purposive sampling of 54 tax professionals to evaluate AI adoption, the benefits, and the challenges for such processes as ITR filing, GST reconciliation, and e-invoicing. The use of regression analysis indicates that the leading causes of workflow efficiency are client satisfaction and time-saving, both driven by AI technology. On the other hand, the findings also suggest an opposite effect on efficiency when excessively automated data accuracy and risk detection processes are the focus, thus indicating the necessity of a judicious AI integration strategy. Hence, the results point to AI as an essential instrument in the reengineering of tax workflows while emphasising the significance of its careful deployment to prevent overly relying on automation.