generative AI is revolutionizing tax planning.

You may have already tried ChatGPT, Copilot or Claude, which use generative AI for text, or Midjourney, which turns simple phrases into visuals, but did you know generative AI is completely transforming finance and tax planning? Let's take a look at how.

generative AI automates vast amounts of data in seconds

Generative AI is a type of artificial intelligence that uses machine learning to analyze and generate data. It can:

• Gather, collate and evaluate enormous amounts of financial data, from bank reports to regulatory filings.
• Identify the critical patterns and trends relevant to tax planning.
• Enable tax professionals to better advise on how to optimize tax strategies and minimize tax liabilities, thanks to incredible access to historical and financial data.

By combining human expertise with the power of artificial intelligence, a tax professional can become an organization’s  secret weapon for growth, competitiveness — and even further success.

make the right decisions for your specific tax needs

The advantages of swiftly and accurately analyzing extensive financial data are many. Tax advisors leverage this information and customize it to suit specific financial and tax requirements. This involves highlighting tax credits, deductions and incentives that align with a company's needs.

By employing AI models capable of simulating various scenarios and predicting outcomes, a tax planner can offer guidance on the most effective tax strategies, restructuring plans and other strategies that support a company’s vision. This proactive approach leads to better, more informed decision-making.

generative AI turns complex tax matters into solutions

For many business people, staying up to date on ever-changing tax laws can be overwhelming — and knowing how to both comply and benefit from these changes is even harder. Generative AI simplifies this process by automating compliance checks, risk assessments and task reporting. Combined with advice from tax experts, businesses receive immediate and accurate guidance on the most beneficial tax solutions available.

This automated approach not only simplifies complex tasks but also greatly reduces the risk of errors in tax filings. Finance professionals use artificial intelligence to get the best results.

understand the limitations of artificial intelligence

There is no doubt generative AI is changing the world of finance. However, as with many technologies, there are downsides, including data privacy concerns and algorithm biases. Tax and business professionals (and everyone else) should take the time to research, understand and address these concerns when relying upon generative AI. There is no substitute for experience and good judgment.