Leveraging AI to Enhance Transfer Pricing Accuracy and Efficiency

Abstract

Transfer pricing, which stands for the method by which multinational companies distribute revenues and expenses to different locations, is fast-growing very sophisticated due to globalization, regulatory scrutiny, and technology improvement. The emergence of artificial intelligence (AI) has brought new possibilities to the enhancement of the accuracy and performance of the whole transfer pricing system. This paper is an exploration of the application of AI technologies to improving data management, compliance, and making more informed decisions in transfer pricing, such as machine learning, natural language processing, and predictive analytics. It concludes, for example, that using AI for transfers will lead to more successful projects and more computation intensive but also for people. While brands have implemented many, and perhaps flawed, solutions, it is the AI revolution.