SAPinsider 2025 Benchmark Study: Tax Technology in SAP Environments

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Meet the Experts

Key Takeaways

  • Accelerate AI and Machine Learning Adoption: 42% of organizations are investing in AI to improve accuracy, enable predictive analytics, and reduce manual effort.

  • Continue Centralizing the Tax Data Governance Framework: 37% globally are focused on AI and automation to maintain tax data cleanliness and accuracy. This includes automated validation rules, real-time data mapping to ERP systems, and periodic audits to eliminate inconsistencies. Clean data ensures reliable compliance reporting, supports AI-driven analytics, and reduces risk during audits or regulatory changes.

  • Prioritize Integration Across Business Functions: 50% of global respondents cite integration as a top priority, connectivity across tax, finance, and ERP systems are critical for efficiency and compliance. When choosing third-party solutions, look for those that are embedded in SAP S/4HANA, while supporting composable architectures to keep the SAP core clean.

This year’s tax technology report highlights global AI and automation practices, including regional insights. Respondents throughout the year shaped this global view of tax technology and automation in SAP® environments.

Tax and finance leaders in SAP environments are continuing digital transformation initiatives globally. Benchmarking against industry-wide global tax automation practices offer an opportunity to measure an organizations’ existing path and celebrate or take course correcting action where needed. Across the globe tax technology adoption (e.g., intelligent mapping, RPA, AI, and Machine Learning) is accelerating. This is good news. AI and automation adoption in tax is paramount to removing blockers that slow business value creation. Value creation today is dependent on high-performing ecosystems, a web in which tax plays a key role in ensuring an organization’s high performance.

Fueled by unique challenges, automation and AI adoption priorities differ by region. Europe, Middle East, and Africa (EMEA) lead in adoption to address strategic transformation (63%) and ESG requirements. Asia Pacific, Australia, and New Zealand (APC & ANZ) are advancing integration and compliance capabilities (43%). North America (NA) and Latin America (LATAM) are using AI and automation to drive efficiency, and audit readiness. These differences highlight how important it is for tax automation and AI adoption paths to be regionally specific.

Read the full report for details and more findings on AI and Automation in Tax including, approaches to tax process automation, tax technology innovation strategies, use of AI, ML, RPA, and intelligent mapping, and improvements experienced from adopting AI and automation

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