Sovos Survey: 58% of Finance Leaders Struggle to Keep Pace with Tax Compliance Mandates as AI Adoption Rises

New report from Sovos finds most organizations are unprepared for accelerating global tax regulations

ATLANTA--(BUSINESS WIRE)--Sovos, the always-on tax compliance company, today released The Speed of Regulatory Change and AI Are Redefining Global Tax Compliance, a new survey report examining how CFOs in finance, manufacturing, and retail companies are navigating escalating regulatory complexity and the role artificial intelligence is beginning to play in their compliance strategies. The report, conducted by Studio ID on behalf of Sovos, surveyed 300 globally and U.S.-based, senior finance executives at companies with revenues of $500 million or more.

The findings underscore a widening gap between the speed of regulatory change and the structural readiness of organizations to absorb it. 58% of survey respondents describe new and ongoing domestic and global tax compliance mandates as complex for their company, and 44% say regulations are changing too quickly to manage effectively. Among the regional developments expected to have the greatest impact in the next 12 to 24 months, respondents cited ViDA, the UAE Corporate Tax Expansion, and the Brazilian Tax Reform as top concerns.

“Regulatory complexity is accelerating, and finance leaders know it,” said Chris Lynch, Chief Marketing Officer at Sovos. “This research shows that compliance is no longer a back-office concern - it’s a strategic risk that sits at the top of the agenda for CFOs and finance leaders around the world.”

Key Survey Findings

• Regulatory complexity is a top business risk. 61% of respondents identified the pace of new government mandates as the biggest compliance risk over the next two to three years, followed by increasing complexity of global operations (56%) and rising costs of compliance technology and staffing (42%).
• ERP integration remains the top implementation barrier. 43% of respondents said their biggest challenge in implementing current and upcoming e-invoicing mandates is choosing a platform that seamlessly integrates with their existing accounting or ERP systems.
• AI investment is accelerating. Nearly 40% of respondents plan to evaluate or implement AI-driven tax compliance tools in the next fiscal year, making it the second-highest stated priority behind developing a more robust risk management plan (50%+).
• Data accuracy is the defining AI capability. More than half of respondents identified accuracy in data and insights as the most important AI capability, followed by 46% who emphasized balancing efficiency and security concerns.
• Concern about AI data security is near-universal. 86% of respondents indicated being extremely or very concerned about data security with AI-enhanced compliance solutions.

Compliance is a driver of business success

Compliance limitations constrain business strategy. 75% of respondents agree that limitations in tax compliance prevent their organization from being more strategic in business decisions, including expanding geographies and introducing new products to market.

“Organizations that treat compliance as a strategic foundation - not just a cost center - will be the ones best positioned to move fast when new mandates arrive,” said Lynch, “The data and discipline that go into tax compliance are a genuine competitive asset.”

The report highlights that preparedness in a real-time regulatory environment is defined less by technology adoption and more by structural integrity - the degree to which data, systems, and processes are unified and audit-ready. Organizations that have consolidated fragmented platforms, standardized data flows, and embedded governance into core workflows are better positioned to respond to new mandates and leverage new technologies, such as AI, more effectively.

The full report, The Speed of Regulatory Change and AI Are Redefining Global Tax Compliance, is available now.

About the Research

Sovos collaborated with CFO Dive’s Studio ID to conduct an online, invitation-only survey of 300 finance leaders, director level and above, in January 2026. Respondents worked in financial services, retail, or manufacturing, with job functions primarily in finance and tax, at companies with annual revenues ranging from $500 million to more than $5 billion.

About Sovos

Sovos is transforming tax compliance from a business requirement to a force for growth. Our flagship product, the Sovos Tax Compliance Cloud, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes nearly 20 billion transactions per year, helping companies scale their compliance strategy in 150+ countries. More than 100,000 customers - including half the Fortune 500 - trust Sovos’ tax and regulatory expertise and unparalleled integration with their business applications. Learn more at sovos.com.