Americans are incorporating artificial intelligence, or AI, into their lives in so many compelling ways, like banking, applying to jobs, making online purchases and getting health care.
According to survey data from Pew Research Center, Americans may encounter such interactions via customer service chatbots and product recommendations based on their previous buying history.
The survey shared how “of 11,004 U.S. adults, 27% of Americans say they interact with AI at least several times a day, while another 28% think they interact with it about once a day or several times a week.”
These facts and figures regarding AI can transcend into Americans management of their personal finance matters, particularly filing taxes.
There are ways to incorporate AI into tax preparation to streamline the process. Here’s more about how this technology is changing the way Americans are filing taxes this year.
[See: Answers to 15 Common Tax Questions]
Can ChatGPT Successfully Fill Out Tax Forms?
ChatGPT can provide only information about things it “knows” or can pull from resources.
According to an article in The Street, the application fared well in completing forms but more complex matters like rulings and deductions were dicey.
And according to a story in The Washington Post, AI tax prep services have bots that provide information, and it’s not always clear, or in some cases, incorrect. The disclaimers that companies use for AI prep should be a cautious reminder that AI technology can still be fine-tuned.
Across-the-board tax answers aren’t going to be a fit for personal tax situations. The best way that ChatGPT can help, according to the article, is to identify a tax preparer, and that’s something you can easily do on your own.
[Related:How to Find a Reputable Tax Preparer Near You]
How Is AI Impacting Tax Filings?
The AI revolution is rapidly transforming the ways we work and live.
“We believe a great use of this disruptive technology is to pair it with an existing customer need for help navigating the complexities of tax filing, in order to build experiences that wouldn’t have been possible before,” Chris Linderwell, vice president of consumer tax products for H&R Block, said in an email.
For example, Linderwell said products like H&R Block’s AI Tax Assist have great potential to help shift consumer mindsets about tax prep over time, making the process smoother and less intimidating to the average consumer, so they can approach it with a sense of confidence and empowerment.
“I’m excited about the potential for AI to enhance the way we do taxes in the future and its ability to provide more tailored explanations of a customer’s tax situation, provide personalized advice on how to maximize tax outcomes and expand self-help experiences when a customer gets stuck,” Linderwell said.
How Are Tax Products Incorporating AI?
According to Linderwell, H&R Block launched AI Tax Assist within its “paid DIY product offerings” this tax season to streamline the tax preparation process.
“Incorporating this technology into taxes made sense for us because it’s a technology people already use in their daily lives for automation, quicker problem-solving, and data analysis,” he said.
“We know that people are increasingly exploring AI technologies for greater efficiency, but those tools are only reliable if developed with accurate information from trustworthy sources,” he added.
[READ: Should You Hire a Tax Professional This Year?]
Additionally, rather than rely on online communities and search results that are often incorrect or misleading, AI Tax Assist lempowers DIY-ers to file how and when they want with the confidence of knowing they can get expert help if needed without paying more, Linderwell said.
Likewise, TurboTax offers tax filers an AI-powered resource, Intuit Assist, which uses a combination tax prep technology from the company, updated tax data, and tax codes and documents from filers to create a streamlined experience.
According to the company, “an AI-powered financial assistant is with you every step of the way, delivering even smarter, easier, faster tax prep and access to your refund.”
Other Ways AI Is Playing a Part in Tax Season
This tax season, Linderwell said H&R Block has been piloting a customer experience that routes callers through a voice-based gen-AI solution, and 52% of those calls were handled by the virtual assistant.
“This means that fewer than half of those customers were dependent on a live agent to get the answer to their question, resulting in more than 2,700 hours of workload saved, and freeing up our time to focus on customer contacts that require more detailed human assistance,” Linderwell said.
“We believe we’re in the early innings of utilizing AI to drive value to customers and our associates. We’re excited about its potential. We have many use cases on the roadmap and in exploration that we’re planning to get after this year,” he added.
What Does the Future Hold for Tax Prep and AI?
Per Linderwell, H&R Block is largely optimistic on the prospects of what AI offers both customers and associates.
“Customers are adopting AI-powered solutions because they solve a problem or fill a need a consumer has,” he said.
“Our research told us that there is a fast-changing awareness and shifting perception of AI across generations. We found it really encouraging that so many consumers, across demographics and tax situations, were both aware of AI and open to using it in their taxes,” he added.
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