AI adoption is accelerating, but tax firms risk falling behind. Without clear success metrics, talent will leave, and competitive advantage will be lost. A new Tolley survey of UK tax practitioners reveals...
Launch event for the consolidated tax laws at RELX Headquarters in London with Ian Glencross, Mai Trinh, Marcia Balisciano, Paul Walker, Ambassador Lalisa Birhanu, Dominic Mathon, Nick Luff, Lisa Mackie...
The rise of generative AI is rapidly transforming the tax profession. A recent survey by Tolley found that over a third of UK tax practitioners are already using these powerful AI tools, with many more...
The tax profession is in the midst of an AI revolution. Generative AI tools are rapidly transforming how tax practitioners research issues, draft documents, and serve clients. While the potential benefits...
Practitioners across the UK are eagerly embracing generative AI to streamline their workflows and enhance productivity. According to a recent survey by Tolley, 35% of tax professionals are already using...
The generative AI revolution is transforming the tax profession, and clients have high expectations for their tax advisers to embrace this cutting-edge technology. However, concerns around ethical implications and risks of using public access AI tools.
According to the Tolley survey, In-house teams expressed high expectations for their firms to use generative AI, with half (53%) expecting their firms to be using the technology.
“GenAI, when plugged into a wider eco-system of other AI applications, platforms and data, means tax professionals can respond to the external environment, and drive real value in their organisations,” says Hayley McKelvey, Tax and Legal – Digital Innovation Leader at Deloitte.
Jane MacKay, Corporate Tax Partner at Crowe, says they are currently using AI to analyse large client datasets, such as Import and Customs’ Duty classifications.
“Generative AI means we can quickly identify errors or trends typically resulting in Customs Duty savings for our clients.”
Mackay also expressed an interest in running broader datasets through generative AI to highlight risks and future growth opportunities for clients.
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A significant 45% of in-house tax teams "expect bills to be reduced as a result of generative AI." Clients anticipate that the efficiency gains from AI-powered tax workflows will translate into cost savings for them.
“More than half (57%) of in-house teams said they expect practices to make changes to billing as a result of generative AI,” the report states. Clients are clearly expecting tax firms to restructure their pricing models to account for the impact of AI adoption.
Despite the enthusiasm, a staggering 77% of tax professionals voiced concerns about the reliability and security of public access generative AI tools. As Helen Whiteman, CEO of the Chartered Institute of Taxation, warns, “The lack of transparency around how AI systems operate can leave tax practitioners and their clients in the dark.”
Clients are understandably wary of the potential risks associated with AI-generated outputs, particularly when it comes to sensitive tax matters. They demand transparency and trustworthiness from the AI tools used by their tax advisers.
The report highlights a "divide between in-house teams and private practices regarding pricing expectations." This divide could potentially strain client-firm relationships if expectations are not aligned.
As Jonathan Scriven, Director of Tax Markets at Tolley, notes, “Advisers will need to think carefully about many aspects of their businesses when deploying AI solutions – pricing structures, resourcing models, the cost of acquiring and maintaining the tools, as well as managing employee concerns around job security.”
In-house tax professionals also expressed a strong demand to be informed if the external advisers who they are working with had used AI. Four-fifths (83%) of in-house teams expect to be informed, whilst only half (50%) of those in private practice think that their clients want to be informed.
Tax firms must carefully evaluate and potentially restructure their pricing models and client relationships to align with the impact of AI adoption. Open communication and transparency will be key to navigating this transition successfully.
As the technology continues to evolve, firms that adapt and embrace AI responsibly, using tools grounded in trusted tax content sources, will be well-positioned to meet their clients' expectations while addressing their concerns. The future of tax practice lies in striking the right balance between human expertise and AI-powered efficiency.
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