Since ChatGPT's debut three years ago, artificial intelligence has gradually gained more attention from finance and tax leaders. In fact, the rise of this technology has spawned a wave of startups offering AI-driven "CFO office" solutions that can help automate key processes, such as reconciliation, or accelerate financial close and budgeting cycles, as CFO Dive previously reported.

Although finance executives are taking a deeper look at the potential benefits of AI, accurate and compliant reporting remains the CFO's top priority. In ensuring this accuracy, merely involving humans is not enough—the tools themselves must meet what Michael Bernard, chief tax officer at tax automation provider Vertex, calls the "human in scope" standard.

"In other words, the ideas for tools built in the future for tax departments or finance teams must come from finance professionals," he said in an interview with CFO Dive.

Making room for AI

Finance and tax leaders seem to be in a wait-and-see state regarding AI: many are convinced the technology will be ubiquitous in the future, but have yet to see it fully integrated into their current workflows.

For example, in an annual survey of corporate tax department leaders released by Thomson Reuters in January, 43% of respondents said they "already use AI in their personal work," but "only 6% said their broader department is an active user of the technology," the report said. "Nevertheless, 88% said they believe AI will become a core part of their workflows within the next five years."

Bernard said the slow penetration of AI can be attributed to several factors, such as companies first integrating AI into customer-facing solutions before addressing back-office matters, and the fact that CFOs "know their reports must be accurate."

"What CFOs are waiting for, to a large extent, is... those extremely precise tools, which have not yet entered the market," he said.

Bernard has served as vice president and chief tax officer of the tax automation solutions provider headquartered in King of Prussia, Pennsylvania, since March 2018. According to his LinkedIn profile, before joining Vertex, he spent 28 years at software giant Microsoft Corporation, serving as general manager and U.S. tax legal counsel. His past experience also includes working as a tax attorney at Union Pacific Railroad and as a tax consultant at Big Four accounting firm Deloitte.

Nevertheless, finance and tax leaders today are already thinking about how to build a place for AI within their businesses and departments—and how the technology will blend with employees' skills and expertise. The Thomson Reuters survey found that when hiring tax personnel, more leaders are looking for candidates capable of filling "hybrid roles." The report showed that in 2025, 52% of respondents wanted to fill positions where "both tax and technology are expected functions," compared to 47% in 2024.

When weighing hiring skilled finance talent versus investing in technology, "it's a delicate balance, but it always revolves around the needs of our reporting and finance teams," Bernard said, while ensuring employees can "shape the technology" to meet "the appropriate scope and outcomes and deliver them," he added.

Finance knowledge first

Although technical skills are increasingly critical, traditional accounting and finance knowledge remains essential. Bernard noted that one of the biggest challenges CFOs face in finding skilled talent is that "the accounting profession feeds the tax profession," and the accounting profession continues to suffer from a persistent talent shortage.

"They are trying to build tax departments for the future, and they have to rely on people who are not CPAs or accountants by training, but who have precise aptitudes and are lifelong learners," Bernard said.

In recent years, leaders have taken steps to address the shortage of qualified CPAs, with a growing number of states approving alternative pathways to CPA licensure, as CFO Dive previously reported. Enrollment in accounting programs has also increased: the American Institute of CPAs said in June that undergraduate accounting enrollment has risen for three consecutive semesters, with the number of new accounting students in the spring 2025 semester up 12% year over year.

Although the use of AI in finance functions may become more common in the coming years, as far as Bernard is concerned, he believes AI or automation is unlikely to completely replace humans in finance or accounting, because "you simply cannot put financial reporting on autopilot," he said.