Tax professionals have acknowledged the potential of ChatGPT and generative AI but also recognize the risks associated with this emerging technology, according to a recent report by Thomson Reuters Institute. The report reveals that ChatGPT has been trained on the US tax code and can answer complex tax questions within seconds. However, its responses may not be entirely accurate, and tax professionals fear its abilities could have severe implications for various industries. The survey conducted by Thomson Reuters Institute in the US, Canada, and the UK showed that tax professionals, auditors, and accountants were among the most likely professions that could be affected by this technology, causing disruption and possible transformation in the industry.
The report, ChatGPT & Generative AI within Accounting Firms and Corporate Tax Departments, covers the feelings of the industry players on this technology, including the potential use cases that could offer significant benefits as the technology matures further. While some perceive the technology’s impact may reach its limits, others believe that generative AI will see a rollout in the next six months.
The survey reveals that 57% of the respondents were from tax, accounting and audit firms, while 43% were from corporate tax, accounting and audit departments. About 85% of the survey participants came from firms with a headcount ranging between two to 49 people. The findings stress the concerns that tax professionals have over generative AI potentially replacing human expertise.
However, the report serves as a reminder that while this technology may be highly sophisticated, it can never replace human planning and expertise. With this in mind, tax professionals must learn how to effectively incorporate this technology, while retaining its valuable insights into the workings of the tax code and other complexities.
As the prospect of generative AI use in various sectors becomes increasingly likely, players in the industry continue to grapple with the benefits and risks associated with it. While the technology may be cutting-edge, there remain numerous considerations for industry players who are keen to reap the benefits while mitigating the risks. The report provides valuable insights into this complex issue, showing how industry players can learn to integrate this technology into their practices in ways that offer benefits but are mindful of potential risks.
