KING OF PRUSSIA, PA — Vertex Inc. (Nasdaq: VERX) released research indicating weak coordination between IT, tax, and finance departments is becoming a growing operational risk for companies facing expanding real-time compliance requirements and accelerating AI adoption.
The study, commissioned by Vertex and based on a survey of 1,050 senior executives across the U.S. and Europe, found many organizations are struggling to align governance, data management, and decision-making as governments tighten electronic invoicing and real-time reporting mandates.
Only 12% of surveyed organizations reported achieving full end-to-end tax technology integration despite 94% expecting stronger collaboration among IT, tax, and finance functions, according to the report.
The findings arrive as businesses invest heavily in ERP modernization, automation, and AI-driven systems intended to manage rising transaction complexity and regulatory scrutiny.
Kevin Permenter, research director for financial applications and agents at IDC, stated that many companies remain early in translating cross-functional coordination goals into consistent operating models.
“As compliance requirements move closer to real time and organizations accelerate investment in automation and AI, gaps in governance, data quality and ownership are becoming more visible and more impactful on business outcomes,” Permenter said.
The survey also found AI adoption is moving faster than governance frameworks. About 26% of businesses reported already using AI-assisted integration monitoring, while only 37% expressed high confidence in the quality of tax-ready master data.
Nearly one-third of respondents linked poor collaboration to data quality problems, wasted investment, or weak returns on tax technology initiatives.
Tax departments also remain less involved in technology decisions than other business functions. The survey found tax teams are consulted on tax technology decisions 37% of the time, compared with 52% for IT teams and 49% for finance departments.
Regional results showed elevated concern across major markets. In the U.S., 77% of organizations reported high levels of concern tied to increasing transaction volumes, data complexity, and digital transformation initiatives. In Germany, Austria, and Switzerland, respondents reported some of the widest operational gaps between IT and tax teams, along with higher levels of fragmented systems and wasted spending.
Chief Technology Officer Sal Visca stated that compliance failures increasingly threaten revenue flow rather than functioning solely as back-office administrative issues.
“As governments roll out e-invoicing mandates and real-time reporting rules, compliance is becoming a gatekeeper for transactions, not a box to tick after the fact,” Visca said.
The report concluded that organizations managing compliance most effectively tend to integrate IT, tax, and finance teams earlier in technology planning processes, establish clear governance structures, and regularly update operational controls as regulatory requirements evolve.
The full report is available at the Vertex Research Library.
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