This can effectively serve the same purpose and also forces you think about what kind of information you want to log - as opposed to just throwing everything into one big bucket. I often see companies tagging with industry, country, source, role etc. These are data points that should live in dedicated fields for better data quality.
Nothing today, depending on the goal you could create a multi-select dropdown to handle such things. Unless you want people to be able to create their own tags on the fly then today that isn't directly supported.