The Positive Impact of AI in Tax: Enhancing Tax Professionals' Work with ChatGPT

Russell Gammon, Chief Solutions Officer at Tax Systems, discusses the positive impact of AI in the field of tax.

He acknowledges the transformative potential of AI-powered tools like ChatGPT, developed by OpenAI, which can read and interpret vast amounts of data and generate written responses in plain English within minutes. While there is debate about how these advancements may disrupt working practices, Gammon believes that tax professionals will not be marginalized but instead will experience improvements in their work as firms adapt to this technology.

Gammon highlights that AI is already being used to automate routine and manual tax tasks, such as checking invoices for tax expenses and analyzing spreadsheets. By offloading these repetitive tasks to AI tools like ChatGPT, tax professionals can free up time to focus on more strategic and value-added activities. Gammon refers to AI as a "co-pilot for tax" rather than a replacement for human practitioners. While ChatGPT's accuracy will improve over time, human oversight will still be essential to verify information and address any difficulties or exceptions.

Gammon sees ChatGPT as an AI co-worker that complements human tax professionals. As the volume of data in the industry grows, AI tools can assist with data crunching and auditing activities. He believes that the introduction of AI tools will enhance and rebalance job roles, with tax professionals increasingly involved in judgment work and deriving insights from data. However, he acknowledges that new skills will be necessary to maximize the potential of AI co-worker partnerships.

Gammon emphasizes the positive impact of AI tools like ChatGPT, which can automate administrative tasks and improve the efficiency and accuracy of tax-related processes. While ChatGPT is not infallible, he advises careful consideration of the tasks assigned to it and the implementation of safeguards to ensure the accuracy of its output. Tax professionals should be prepared to experiment with prompts and queries to refine ChatGPT's responses and achieve the desired results. Overall, Gammon concludes that tax professionals now have access to a transformative and powerful tool that can be leveraged to streamline operations and enable them to focus on business strategy and providing consultancy and recommendations to achieve organizational goals.

By fLEXI tEAM