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How are tax professionals using AI?

AI Industry-Specific Solutions > AI for Professional Services7 min read

How are tax professionals using AI?

Key Facts

  • 70% of tax firms now use AI at least weekly, signaling rapid adoption across the industry.
  • 78% of tax firms plan to increase AI investment, reflecting strong confidence in its future value.
  • AI is projected to save tax professionals 12 hours per week within the next five years.
  • 69% of tax professionals expect to bring more work in-house over the next five years using AI.
  • Only about half of tax teams have moved beyond the exploratory phase in AI adoption.
  • 69% of tax firms connect with clients monthly, a rhythm AI tools are helping to streamline.
  • Anrok Inc., an AI tax compliance startup, raised $55 million in Series C funding in 2025.

Frequently Asked Questions

How are tax professionals actually using AI in their day-to-day work?
Tax professionals are using AI to automate routine tasks like data entry, drafting client emails and memos, summarizing documents, managing large datasets, and conducting technical tax research. This helps free up time for higher-value advisory services while improving response speed and accuracy.
Is AI replacing tax professionals, or is it just a tool to help them?
AI is not replacing tax professionals—it's redefining their roles by automating repetitive tasks so they can focus on strategic advisory and client relationships. Experts agree that human judgment, trust, and client connection remain central to the profession.
How much time can a tax firm really save by using AI?
Firms can expect to save about 4 hours per week within the first year of AI adoption, increasing to 8 hours in three years and up to 12 hours weekly within five years, according to industry projections.
What’s the difference between off-the-shelf AI tools and custom AI solutions for tax firms?
Off-the-shelf tools often struggle with integration, compliance, and tax-specific workflows, while custom AI solutions—like those built on owned, secure systems—can be tailored to handle sensitive data, align with firm processes, and avoid subscription fatigue.
Are most tax firms already using AI, or is this still early days?
AI adoption is accelerating: 70% of firms now use AI at least weekly, and 78% plan to increase their investment, though about half are still in the exploratory phase of implementation.
Can AI help with client onboarding and risk assessment in tax practices?
Yes, AI can streamline client onboarding through automated document classification and secure collaboration, while custom lead scoring and risk assessment engines can help prioritize high-value clients and reduce audit exposure.

Transforming Tax Practices with AI That Works the Way You Do

Tax professionals today face mounting pressure from manual processes, compliance complexity, and rising client expectations. As explored, AI is no longer a futuristic concept—it's a practical tool being leveraged to automate invoice and AP processing, streamline client onboarding, and reduce audit risk through intelligent data management. Off-the-shelf AI tools often fall short, lacking the integration depth, security, and compliance rigor essential for tax firms navigating IRS regulations, SOX, and data privacy standards. This is where AIQ Labs delivers real value. By building custom, production-ready AI workflows—like AI-powered lead scoring, secure internal knowledge bases, and automated financial discrepancy detection—we enable tax practices to operate faster, smarter, and with greater accuracy. Firms using such tailored systems report time savings of 20–40 hours per week, reduced errors, and improved client throughput. Unlike subscription-based AI services that create dependency and fragmentation, AIQ Labs’ ownership model ensures full control, scalability, and seamless alignment with existing operations. If you're evaluating AI solutions, the question isn’t whether to adopt—it’s whether generic tools are holding you back. Take the next step: claim your free AI audit from AIQ Labs and discover how a custom AI solution can be built to solve your firm’s unique challenges.

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