Navigating Disruption: What Actuaries Can Learn from Tax Talent Strategies
Data Granularity and Its Consequences
Tax authorities, spurred by initiatives such as the OECD’s Pillar Two and Tax Administration 3.0, increasingly demand more granular and real-time data. This has expanded the focus of tax teams "from traditional tax compliance to being more upstream on the data," according to Ralf Pieters, Global Head of Tax at AkzoNobel. Jennie Fisk, Tax Director at The LEGO Group, emphasised that accuracy and understanding of product content are now essential.
More than 25% of respondents reported limited data and technology expertise in their departments as a significant challenge. For actuaries, this underscores the importance of developing data competencies that extend beyond classical analysis to include real-time systems and governance.
AI Skills Rise to the Top
In 2025, 57% of tax leaders describe AI skills as "essential," a figure expected to rise to 94% by 2029. AI is currently applied primarily in automating tasks such as transfer pricing documentation (47%), corporate income tax returns (43%), and global tax provisions (40%).
While leaders acknowledge AI’s potential in areas like tax forecasting and risk identification, many are taking a cautious approach, citing concerns about accuracy and data security. This trend highlights a gradual, phased integration of AI – one that may resonate with actuarial fields facing similar questions about automation and human oversight.
Shifting Skills Landscape
When asked about the most-needed skills in the next one to two years, 45% of tax leaders cited specialist AI skills, followed by data analytics and strategic insights (42%), and specialist tax technical skills (36%). Other relevant skills included cross-business advisory (25%) and communication (13%).
Dana Lasley, Vice President of Global Tax Planning at Emerson Electric, noted: “Our team is tax people first, with the technology skill set later,” indicating that technical foundations remain critical but must be supplemented with digital fluency.
Talent Shortages and Budget Constraints
Access to talent was ranked among the top three challenges for 28% of respondents. The most cited staffing constraint was hiring freezes or budget constraints, identified by 53% of respondents. Other key issues included lack of available talent with skills outside tax/accounting (41%) and difficulty retaining current talent (40%).
To mitigate this, tax departments are expanding the use of automation and outsourcing. Currently, 86% outsource at least one tax process. Among companies with revenues above USD 20 billion, 77% see access to the latest technology as a major or significant benefit of outsourcing, while 70% cite the ability to reallocate internal resources to strategic objectives.
New Roles and Resourcing Models
In response to operational complexity, new roles have emerged: 49% of tax departments have added a "Tax Transformation Lead," 46% a "Data and Innovation Lead," and 43% a "Tax Operations Lead" in the past two years. These shifts reflect a move toward operational and digital leadership within the tax function.
Shared service centers and outsourcing are used widely: 81% use some form of outsourcing, and 58% rely on shared service centers – an increase from previous years.
Key Takeaways for Actuaries
1. AI Skills Are Becoming Essential
- 57% of tax leaders say AI skills are essential today; 94% expect them to be essential by 2029.
- Actuaries should prepare for AI integration by building practical skills in automation and data handling.
2. Data Quality and Granularity Matter
- More than 25% of tax leaders cite limited data and tech expertise as a key challenge.
- Actuaries must ensure their data is not only technically sound but also usable across systems and regulatory frameworks.
3. Demand for Hybrid Skill Sets Is Growing
Top three skills needed: AI (45%), data analytics and strategic insights (42%), and specialist domain knowledge (36%).
Actuaries benefit from combining technical expertise with analytics, communication, and advisory capabilities.
4. Budget Constraints Shape Workforce Strategy
- 53% of respondents expect hiring freezes or budget constraints in the next two years.
- Actuaries may face similar pressures – upskilling and process optimization can help mitigate this.
5. Automation and Outsourcing Are Strategic Tools
- 86% of tax functions outsource at least one process; 81% view outsourcing as a main cost-reduction strategy.
- Actuarial functions can explore selective outsourcing or automation to manage complexity and scale.
6. New Roles Emphasize Innovation and Operations
- Roles like "Tax Transformation Lead" (49%) and "Data and Innovation Lead" (46%) are rising.
- Actuaries should consider roles that go beyond traditional modeling – focusing on process design, digital transformation, and data innovation.
7. Cautious AI Adoption Reflects Accuracy Concerns
- The most comfortable AI applications are routine tasks like documentation and tax returns.
- Actuaries should adopt AI where it adds efficiency, while maintaining oversight in high-stakes modeling areas.
8. Collaboration with Finance and IT Is Critical
- In many tax departments, technology strategy and budget remain controlled by Finance/IT.
- Actuaries should engage proactively with cross-functional teams to align technical needs with enterprise strategies.