More than half of tax practitioners use AI in their research in some form or another, most commonly to look into tax deductions and general corporate matters.
A recent survey from tax research solutions provider BlueJ, in cooperation with CPA.com, found that 54% of tax practitioners use some form of AI in their research, and 86% agree that firms that use AI have a competitive advantage over firms that do not. As for what exactly it is they’re researching, the two most common topics are tax deductions and general corporate issues, both at 13%; followed by questions regarding tax rates, at 8%; and finally, issues related to individual taxation, tax procedures and partnership taxation, all three tied at 7%.
“For tax practitioners researching unfamiliar areas, these comprehensive responses can be invaluable for quickly gaining an overall understanding of a topic. For those working in more familiar areas, these answers can serve to validate their knowledge, ensuring it’s up-to-date and accurate,” said the report.
The report also found a significantly higher rate of adoption of AI-based tax research tools versus what it referred to as legacy systems. While the weekly or daily use rates of Bloomberg, Wolters Kluwer and Thomson Reuters solutions ranged between 50-61%, the use of AI-enabled tax research tools (of which BlueJ is one) was 88%.
Search engines remain a major tool for tax research: 81.3% of respondents turned to search engines for tax research in the past month, despite paying for a suite of tools. This high percentage perhaps reflects people’s dissatisfaction with traditional tax research solutions, according to the report. The poll found three main complaints: they’re too time-consuming to use (42%), too expensive (42%), and difficult to navigate (37%).
The survey found AI is becoming a major part of tax research and tax practitioners know it, as 33.1% have already adopted AI tax research tools, 30.4% are considering it but have no firm plans right now, and 20.3% plan to adopt these solutions within the next few years.
“The findings of the Blue J and CPA.com AI Tax Research Solution Outlook Report make one thing clear: AI is no longer just an experiment for tax practitioners,” the study concluded. “Already, AI-powered tax research is creating measurable improvements for adoption rates and research speed, providing a tangible advantage over legacy tax research solutions. For firms still evaluating whether to take the leap, the decision window is narrowing. Those who delay will find themselves in a widening gap, competing against peers who are faster, more informed, and more efficient. And while barriers to adoption remain, the many firms already thriving alongside AI are proof that these challenges are surmountable.”
