Indirect Compliance powered by CoCounsel

Thomson Reuters AI is built to a higher standard designed specifically for professional, high-stakes environments. This approach—referred to as Fiduciary-Grade AI™—focuses on accuracy, transparency, and accountability.

It is grounded in authoritative, domain-specific content, shaped by subject-matter experts, and protected by strong privacy and security safeguards. Outputs are designed to be transparent and verifiable, with clear links to trusted sources, so professionals can review and defend the results.

Unlike general-purpose AI tools, this standard prioritises reliability over approximation—recognising that in areas such as tax, legal, and regulatory compliance, “almost right” is not sufficient.

Learn more about this approach in the article Thomson Reuters Standard for High-Stakes AI

AI in ONESOURCE Indirect Compliance powered by CoCounsel is built on a controlled, domain-specific approach to model training. It is grounded in trusted Thomson Reuters content and expertise, rather than relying on unverified public data sources.

Customer data is kept strictly separate and secure. It is not used to train shared models or applied across tenants, ensuring there is no cross-customer learning or data leakage. The system operates within clearly defined boundaries, with human-in-the-loop controls and full visibility into how outputs are generated—so customers retain control over how AI is used in their compliance processes.

AI-powered indirect tax compliance software combines automation and artificial intelligence to manage the end-to-end compliance lifecycle.

It supports key processes such as data validation, reconciliation, return preparation, and filing, while using AI to identify anomalies, propose corrections, and streamline workflows. Rather than relying solely on manual effort or static rules, AI enhances decision-making and helps teams manage increasing regulatory complexity with greater efficiency and accuracy.

Traditional rules-based automation relies on predefined logic—if a condition is met, a specific action is triggered. While effective for structured tasks, it can struggle with exceptions, data inconsistencies, and evolving requirements.

AI-powered compliance goes further by identifying patterns, detecting anomalies, and generating recommendations based on context. It can surface issues that are not explicitly defined in rules and help resolve them more efficiently. Importantly, AI supports decision-making but does not replace it—final decisions remain with the user, with rules and governance controls always taking precedence.

AI improves indirect tax compliance by enhancing both accuracy and efficiency across key processes.

It can automatically detect anomalies, identify missing or inconsistent data, and highlight discrepancies before they impact filings. By recognising patterns and learning from prior resolutions, AI helps reduce manual investigation and repetitive corrections.

The result is a more proactive approach to compliance—where issues are identified earlier, workloads are reduced, and teams can focus more on review and oversight rather than manual data handling.

Indirect tax compliance software can automate the full compliance lifecycle, from source data to submission. This typically includes:

• Automated data import 
• Validation and quality checks
• Exception detection and handling
• Return preparation and mapping to jurisdiction-specific requirements
• Reconciliations between the general ledger (GL), e-invoices and VAT returns 
• Filing and reporting, including electronic submission where applicable

AI-driven capabilities further enhance these steps by improving data accuracy, prioritising exceptions, and supporting continuous, workflow-based compliance rather than periodic, manual processes.

AI-powered indirect tax compliance software is designed for organisations managing complex, multi-jurisdictional tax requirements.

It is particularly relevant for:

• Multinational companies operating across multiple countries
• Teams handling high transaction volumes and fragmented data sources
• Organisations navigating e-invoicing mandates and real-time reporting requirements
• Tax functions looking to standardise and centralise processes across systems and regions

These solutions help create consistency, improve control, and reduce the operational burden of managing indirect tax at scale.

ONESOURCE Indirect Compliance improves audit readiness by making every step of the compliance process visible, traceable, and explainable.

Al automated actions are logged, with clear audit trails showing what was done, why it was done, and what data was used. AI-generated outputs are transparent and reviewable, allowing users to validate decisions before submission.

Human review and sign-off are built into the workflow, ensuring nothing is filed without approval. This combination of automation and control helps organisations maintain defensible, audit-ready documentation across all jurisdictions.

The key difference is the combination of AI-driven automation with full user control and transparency.

Unlike traditional solutions that rely primarily on static workflows, ONESOURCE uses AI to automate complex tasks, identify issues, and propose resolutions across the entire compliance lifecycle. At the same time, it maintains a human-in-the-loop approach—where users review, approve, or override actions as needed.

AI recommendations never replace rules or governance controls. Instead, they enhance them—providing smarter, faster workflows while ensuring that final decisions remain with the user.