Tracy Davis, a pioneer in tax technology at Thomson Reuters, explains how hybrid roles are reshaping the industry.
How do corporate tax professionals view emerging hybrid roles integrating traditional expertise with cutting-edge technology? According to the 2025 Corporate Tax Department Technology Report, they’re increasingly recognizing the impact these roles are having on the industry. Over half of respondents expect their responsibilities to change within the next three to five years due to technology advancements, and nearly two-thirds of larger companies anticipate such changes.
Many tax professionals are asking how these roles will help tackle the technology adoption challenges their departments face, and they’re seeking advanced tools to navigate innovations and avoid potential risks. This interview will dive into these hot topics, examining how these roles are reshaping the future of tax management.
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Tracy Davis is a distinguished leader in the field of tax technology. She is the Global Director, Retail & Manufacturing Lead at Thomson Reuters. With an impressive career spanning over 25 years, she has been assisting Fortune and Global 1000 companies in streamlining and enhancing their tax processes and operations.
We sat down with Davis recently, to discuss her thoughts on the importance and impact of integrating technology within corporate tax departments, highlighting the strategic role of tax technology managers and hybrid tax roles in driving innovation and efficiency.
Tracy, to start, can you describe the primary responsibilities of a dedicated tax technology manager and explain how these differ from a traditional tax manager?
Davis: Absolutely. So, a dedicated tax technology manager is generally the go-to person that helps bring technology into the corporate tax department. They handle everything from planning out the tech strategy to managing projects and making sure technology is used to boost efficiency, compliance, and accuracy in tax work. They’re all about innovation and often work closely with IT and other teams to make sure tech projects line up with the company’s goals.
On the flip side, a traditional tax manager is more focused on the nitty-gritty of tax compliance, planning, and reporting. They’re all about making sure the company meets its tax obligations, getting the best tax positions, managing risks, and using tech as a helpful tool, but it’s not their main thing. The big difference is really in the focus: tax technology managers are all about integrating technology, while traditional tax managers concentrate on their tax expertise and making key decisions.
In what ways can dedicated tax technology managers drive innovation within the tax department, and could you share some specific initiatives that you’ve seen succeed?
Davis: I would say that dedicated tax technology managers can really shake things up in the tax department by bringing in and managing advanced tech solutions. They tend to help create an atmosphere of continuous learning, and make sure the tax department stays up-to-date with the latest tech trends.
One successful initiative might be integrating artificial intelligence (AI) tools to automate routine tasks, like tax returns and handling compliance processes. This really frees up the tax team’s time to focus on more strategic work, which is a huge win.
Another approach is creating hybrid tax/tech roles. This means having team members who are skilled in both tax and technology, which helps the department better understand and use these new tools. Investing in regular tech training is also key because it keeps everyone’s skills sharp and prepares the team for new technology as it comes up.
All these efforts make the tax department run more smoothly and place them in a great spot to help shape business strategies. It’s all about using technology to add more value and achieve better results.
In your experience, what are the key challenges corporate tax departments face when adopting new technology, and how can tax technology managers help them get past these issues?
Davis: From what I’ve seen, some big challenges include people being resistant to change, not having enough tech-savvy staff, budget issues, and sometimes not having a clear plan or measures for tech projects. Because of this, departments often end up reacting to problems instead of planning ahead, which can really slow down growth and delays improvements.
This is where dedicated tax technology managers come in. They can really make a difference by leading the way in bringing in new tech solutions that match with the company’s goals. They focus on change management to make sure everyone in the tax department knows how to use the new technology. Plus, when they set clear goals and promote teamwork across departments, it helps everyone get on board with the changes. This not only smooths out the whole process but also highlights just how valuable tech investments can be.
In your opinion, how do hybrid roles help modernize corporate tax departments? What skills are needed for these roles?
Davis: In my view, combining tax and tech skills is really important for bringing corporate tax departments up to speed. These roles act as a bridge between traditional tax functions and the cutting-edge technologies that are reshaping the industry. By using smart tools like AI and data analytics in our tax work, we can make things run more smoothly, stay on top of compliance, and make smarter decisions moving forward.
To excel in these hybrid roles, professionals really need a solid background in tax regulations and compliance, which is the bedrock of any tax function. However, that’s just the starting point. They also need to be proficient in using the latest technology tools and software, and they must have strong data analysis skills to extract meaningful insights from the large amounts of data we deal with.
Additionally, I would say change management expertise is crucial. These roles often involve leading the transition to new systems and processes. This helps ensure the entire organization is aligned and on board with broader business goals. It’s an exciting area to be in, and I believe it’s where the future of corporate tax is headed.
Unveiling the future of tax departments
As we’ve discussed, the integration of technology within corporate tax departments isn’t just a trend, it’s redefining tax roles and responsibilities. Dedicated tax technology managers and hybrid tax/tech roles are leading this evolution, driving innovation, efficiency, and strategic value. By overcoming challenges and embracing new technologies, these professionals position tax departments as vital partners in achieving broader business objectives.
But the journey doesn’t stop here. In Part 2 of our series, we’ll continue our conversation with Davis, diving deeper into collaboration, technology integration best practices, and future insights on the tax workforce.
Part 2: A tax leader’s insights on collaboration, technology trends, and workforce evolution
