Why tax leaders should rethink AI talent management

Whatever tax leaders think about integrating GenAI into decision-making and workflows, it may already be time to revisit those assumptions.  

For example, it’s likely that the pool of GenAI talent is broader than leaders realise, and it’s on the cusp of expanding rapidly, according to a McKinsey report. The vast majority of current GenAI users (88 percent) are in non-technical jobs. Here’s another eye-opening (though less surprising) finding from the survey research: Whether they’re in technical or non-technical roles, about half of the workers who describe themselves as heavy users and creators of GenAI say they plan to quit their jobs in the next three to six months.  

How can organisational leaders turn that around and improve retention of these highly valuable resources? This is an important consideration for all organisational leaders, including heads of tax. Even if a tax department has yet to invest in GenAI, it’s difficult to imagine a near future in which GenAI and AI tools are not key components of digital tax transformation journeys. 

One way to strengthen AI-skills retention is by looking beyond remuneration. McKinsey’s research shows that these workers place a surprisingly strong emphasis on flexibility and relational factors such as meaningful work, caring leaders and health and wellbeing. 

The report suggests three questions that companies should ask themselves: 

1. How can we reimagine jobs to be more human-centric? As businesses evaluate the distribution of work between AI and humans, it's essential to remember that AI-savvy employees highly value the development of social-emotional and higher cognitive skills required for creative and collaborative tasks. 
2. How can we redefine flexibility? Companies may want to change how they evaluate work output, with more emphasis on results and less on the time it takes to complete. GenAI may even raise the possibility of revisiting the 40-hour benchmark for the working week if meaningful output can be achieved in, for example, 20 hours. Companies should seek to emphasise factors that make work creative, distinctive and meaningful. 
3. How do we emphasise the right kind of listening? A constantly evolving dialogue around GenAI should replace leading by assumption. While a majority of workers routinely express enthusiasm about GenAI, there is an undercurrent of worry about job loss. This represents an opportunity for leaders to discuss the changes that this tool brings. 

Additionally, organisations should consider ways to leverage AI to free up more time for innovation and collaboration. For tax leaders, this means automating more manual tasks to free up more time to devote to higher-value activities. 

You can read about the principles that govern Vertex’s AI development along with insights we’ve gleaned from our work so far (e.g. why we believe GenAI is a game-changer for tax departments and why control is crucial) in a post by Chris Zangrilli, Vertex’s Vice President of Technology Strategy.