In a recent test of ChatGPT’s Deep Research feature, ZDNET asked the AI to identify 20 jobs that OpenAI’s new o3 model could potentially replace. The top job on the list was ‘tax preparer,’ with a 98% probability of being automated according to ChatGPT. While AI is being used to streamline retail tax preparation services, the accuracy and reliability of tax returns may not be guaranteed if prepared solely by machines.
Despite advancements in AI technology, tasks such as organizing receipts, categorizing expenses, and entering data into tax forms are not seamlessly integrated into current AI capabilities. Even individuals with well-organized records may find some aspects of tax preparation still require human intervention.
AI features in tax preparation software like TurboTax and H&R Block can offer some assistance, such as importing data, auto-filling forms, checking for errors, and recommending deductions. However, the accuracy of generative AI tools in tax preparation can vary, with some users reporting unsatisfactory results.
Expense tracking services like Fyle, SparkReceipt, and QuickBooks utilize AI for automating receipt scanning, categorization, and expense tracking. While these tools can save time, users should be cautious of the accuracy of AI-generated categorizations.
Microsoft’s Copilot integration with Excel can automate tasks related to organizing tax data in spreadsheets, saving time and simplifying the process. Chatbots like ChatGPT and Perplexity can provide tax advice and guidance on stable tax topics, but users should specify their jurisdiction for accurate information.
Uploading documents for analysis and explanation by AI chatbots can help users understand complex tax forms and instructions. However, AI may not be suitable for providing legally binding tax advice, highlighting the importance of human oversight in tax preparation.