Generative AI for Tax: Looking Back, Looking Ahead

Abstract

This article examines the significant advancements in generative AI in tax in 2023 and looks ahead to what is likely to emerge in 2024 and beyond. The article predicts significantly improved foundational models, AI assistants like Microsoft's Copilot gaining traction in tax practice, and the potential for AI's reasoning capabilities to surpass human expert performance in tax research and planning. Drawing on recent research, the article predicts substantial potential benefits for tax work generally, such as enhanced analytical depth, reductions in error, and improved efficiency in research, compliance, and planning.

Keywords: generative AI, taxation, artificial intelligence

JEL Classification: H0