Key AI and Data Science Trends for Tax Professionals in 2024

Dear Tax Professionals,

The field of artificial intelligence (AI) and data science is rapidly evolving, and it is essential for tax professionals to stay ahead of the game. Recent surveys of over 500 senior data and technology executives, including those from MIT's Chief Data Officer and Information Quality Symposium sponsored by Amazon Web Services (AWS) and Thoughtworks, as well as a survey conducted by Wavestone, have provided insights into five key trends that are shaping the industry in 2024.

Trend 1: Generative AI

One of the key trends is the need for generative AI to deliver real value. Although there has been a lot of excitement and investment in generative AI, most organizations are still in the experimental phase, and only a small fraction of companies have deployed generative AI in production or at scale. In 2024, the focus will be on integrating generative AI into business processes and enhancing data strategies to realize its transformational potential.

Trend 2: Industrialization of Data Science

Another trend is the industrialization of data science, which means transitioning from an artisanal activity to a more industrialized approach. Companies are adopting platforms, methodologies, and tools like machine learning operations (MLOps) systems to accelerate and scale the production of data science models. This shift is facilitated by external vendors as well as the development of in-house platforms, with a significant emphasis on the reuse of data sets and models.

Trend 3: Data Products and Data Product Management

Organizations are increasingly adopting data products and data product management, but there is variation in how these are defined. While some include analytics and AI within the concept of data products, others view them as separate entities. Regardless of the definition, the trend highlights the importance of managing data, analytics, and AI from conception to deployment as cohesive products.

Trend 4: Changing Role of Data Scientists

The changing role of data scientists is another trend, as the once highly coveted role is evolving due to the proliferation of related roles such as data engineers and machine learning engineers. Citizen data science facilitated by automated machine learning tools and platforms like ChatGPT is also on the rise. While professional data scientists remain crucial for developing new algorithms and interpreting complex models, their roles are becoming more specialized.

Trend 5: Consolidation of Data and Analytics Leadership

Finally, there is a trend towards consolidating data and analytics leadership under broader technology leadership roles. This change aims to reduce confusion and improve collaboration across technology functions within organizations, highlighting the need for leaders who are business-oriented and capable of translating strategy into actionable insights and systems.

These trends emphasize the need for tax professionals and leaders in any organization to adapt to the changing landscape of AI and data science. Embracing these trends can lead to more informed decision-making, improved operational efficiency, and the ability to leverage AI and data science for competitive advantage. It is essential to stay ahead of the game by adopting the latest trends and technologies, and these five key trends provide valuable insights into the future of AI and data science.

Take care, and I will see you next week.

Nida