AI-Generated Tax Advice Is Not (Yet) Making the Grade

Taxpayer Advocate Service, Is AI Generated Tax Advice Making the Grade?:

AI is a rapidly evolving new technology, and may not be able to provide accurate answers to your complex tax questions. ...

Recently, some leading tax preparation companies have taken AI a step further by providing generative AI assistants, often referred to as AI chatbots, to answer a wide variety of tax-related questions. ...

Despite efforts to ensure accuracy, these AI assistants may encounter difficulties interpreting complex tax laws correctly or considering unique circumstances that could impact a taxpayer’s return. As a result, taxpayers should not solely rely on AI-generated tax advice.

A recent informal review by the Washington Post found that two of the leading tax preparation companies’ chatbots provided inaccurate or irrelevant responses up to 50 percent of the time when initially asked 16 complex tax questions. ...

While AI can be a useful tool in streamlining the overall tax filing process, taxpayers should not rely on AI-generated responses to complex tax questions.