Assessing the Influence of Artificial Intelligence on Corporate Tax Compliance and Financial Reporting

This study investigates the impact of artificial intelligence (AI) adoption on corporate tax compliance and the quality of financial reporting. As regulatory environments become increasingly complex, firms are turning to AI technologies—such as machine learning algorithms, automated tax software, and intelligent audit tools—to improve compliance accuracy, reduce reporting errors, and enhance transparency. Using a quantitative research approach, data were collected from a cross-section of finance and tax professionals across multiple industries. The findings reveal that AI significantly enhances the timeliness and accuracy of financial disclosures and reduces the incidence of tax non-compliance. Moreover, firms employing AI demonstrate improved internal control mechanisms and greater consistency in tax reporting practices. The study contributes to the literature by highlighting AI’s potential to transform corporate compliance functions and recommends strategic AI integration in financial systems as a policy direction for tax authorities and regulators in both developed and emerging economies and reporting.