Embracing AI in the Tax Profession
The landscape of the tax industry is rapidly evolving as AI technology continues to make inroads into professional services. A recent report by Thomson Reuters has highlighted a significant shift in the perception of AI among tax professionals. With 77% of tax experts acknowledging the potential applications of AI in their field, the industry is poised for a transformation.
Particularly noteworthy is the growing confidence in Gen AI, with 60% of corporate tax professionals endorsing its use—an increase from the previous year. This surge in acceptance is mirrored by the intentions of in-house corporate tax teams, where a majority now expect their external tax advisers to incorporate AI into their services.
The report underscores a trend towards the adoption of AI tools in the tax profession, with many professionals already leveraging or planning to use open-source Gen AI tools like ChatGPT. However, Ray Grove, Head of Corporate Tax and Trade at Thomson Reuters, cautions against relying solely on generic AI solutions. He emphasizes the importance of industry-specific tools that draw from reliable sources to avoid misinformation and enhance efficiency.
Grove further explains that bespoke AI tools can assist with critical tasks such as identifying accounting discrepancies, preparing tax returns, and conducting risk assessments. While these tools are not yet ubiquitous, their potential to improve productivity and provide a competitive advantage is increasingly recognized by industry leaders.
The shift towards AI adoption is evident as more tax departments deliberate on integrating AI tools within their operations. The Thomson Reuters report indicates a decrease in firms with no plans to use AI, coupled with an uptick in those contemplating its use. Tax firms are eyeing AI for a variety of functions, including accounting, tax research, and compliance activities.
In response to this shift, Thomson Reuters has introduced Checkpoint Edge with CoCounsel, a pioneering Gen AI product designed for tax professionals. This tool combines the company’s GenAI assistant with an AI-Assisted Research skill, streamlining complex tax research and enabling less experienced researchers to operate with less oversight.
While the impact of AI on employment rates within the tax industry remains to be fully understood, over half of the professionals surveyed view AI as posing little to no threat to jobs. Instead, there’s an increasing recognition that AI will allow tax experts to concentrate on high-value tasks that require human insight. Checkpoint Edge with CoCounsel exemplifies how GenAI can expedite obtaining trusted answers for intricate research queries, thereby enhancing productivity in traditionally time-consuming areas.
