Alarie Presents Generative AI For Tax: Looking Back, Looking Ahead Today At Toronto

Benjamin Alarie (Toronto, Blue J Legal; Google Scholar) presents Generative AI For Tax: Looking Back, Looking Ahead at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series hosted by Ben Alarie:

This article canvases the highlights of what has been going on with generative AI over this past year. It outlines the main developments ushered in by the large technology players for the development and commercialization of AI in 2023 and then, more importantly for the purposes of tax professionals, offers a quick rundown of some of the principal developments in the world of tax law specifically for generative AI in 2023, particularly regarding tax analysis. It then forecasts what lies ahead for generative AI in tax in 2024.

This exercise is inevitably somewhat fraught since AI technology is moving quickly, but my view is that it is better to hazard a fuzzy speculative view of what lies ahead than to be too timid to posit any view at all. To this end, the discussion outlines what we can expect in terms of developments from the tech giants and from the providers of tools that are most relevant to tax professionals.

Conclusion
The year 2023 was a landmark for generative AI in tax. As we move into 2024, change will continue at a rapid pace. The advancements we witnessed in 2023, particularly with technologies like GPT-4, have set the stage for what we can expect to be a transformative year ahead, with the emergence of GPT-5 and other sophisticated models, such as Gemini and Claude, in the offing. The conversation about AI in tax is evolving from a futuristic concept to an everyday reality. In 2024 we anticipate seeing these technologies become more refined and integrated into our daily tasks. This doesn’t mean that our jobs are at risk; rather, it suggests that our roles will evolve to harness the power of AI for the more routine aspects of tax work, freeing us up for the complex, strategic thinking that adds the most value for our clients.

Generative AI is now establishing itself as a necessary tool in the tax professional’s kit, with clear potential to make tax research more efficient and effective. However, it will not become a replacement for the nuanced understanding and judgment that experienced professionals bring to their work. As we embrace these new tools, we must remain focused on the value they add, while also being mindful of the importance of keeping our work human-centered and ethically grounded.

As we look ahead, the conversation about the integration of generative AI in tax law is not just about technology; it is about how we choose to adapt to changing possibilities and improving capabilities as professionals. Our challenge will be to use these tools responsibly and to continue to provide the insight and expertise that our clients rely on. The future of tax work is here, and it is up to us to shape and mold it.