GenAI in Tax: Making Tax Consultants Efficient with Human-in-the-Loop
The Essential Role of Humans in AI
In the world of artificial intelligence and taxation, particularly within complex fields such as tax consulting, the concept of “Human-in-the-Loop” (HITL) is indispensable. While AI tax technologies excel at processing vast amounts of data and uncovering patterns, human oversight remains crucial. This human touch ensures that AI-generated solutions are not only accurate but also contextually relevant. The nuanced understanding that humans bring to AI outputs is essential, addressing the specific needs of individual tax queries and situations.
Collaboration Between AI and Human Expertise
GateAI’s Wolff Tax tool exemplifies how AI and tax expertise can work harmoniously. Under the HITL approach, every AI-generated response is reviewed and verified by human experts. This collaboration guarantees that the solutions provided meet the highest standards of accuracy and compliance, instilling confidence in both the professionals and their clients. As Conrad Young, former Chief Digital Officer at Deloitte, noted in an address to the Chartered Institute of Taxation UK, “automation and augmentation can help with workloads, especially large data sets. However, these large data sets often need ‘very granular’ analysis.” This highlights the essential role human expertise plays in refining AI outputs.
An Opportunity for Great Professional Growth
For newcomers to the tax field, the HITL model provides a robust framework that builds trust and assurance. By backing AI tax software tools with human verification, professionals can confidently deliver advice and documents that uphold the highest industry standards. This reliability allows them to engage more deeply in strategic aspects of their work, enhancing their professional development and client relationships.
A survey of 446 UK tax professionals reveals that 66% are either already using or will soon use AI for work purposes. This is a promising development, as Bivek Sharma, Chief Technology Officer for PwC UK, stated, “AI is coming” but it is moving so quickly that businesses need to consider where it will end up in the future, rather than how it is now.
Continuous Learning and System Improvement
The HITL model also promotes continuous learning and refinement. Human experts interacting with AI outputs provide feedback that enhances the algorithms, making the system smarter over time. This iterative process ensures that AI tax consultants solutions adapt to industry changes and emerging challenges, maintaining their relevance and effectiveness.
Generative AI has the potential to automate grunt work and add value to more complex tasks, with 91% of survey respondents prioritizing AI for researching matters. Drafting documents (87%) and preparing communications such as briefs and letters (80%) are also high on the list.
Harnessing the Full Potential of AI
Despite the enthusiasm for AI, 79% of UK tax professionals express concerns over the ethics and trustworthiness of public-access and free-to-use generative AI platforms. A lack of trust (29%) and concerns over hallucinations (27%) were highlighted. However, if a generative AI solution is fine-tuned for the tax market and grounded in proven, authoritative tax research, 71% of professionals would be “somewhat” or “completely comfortable” using AI.
By integrating the human touch in AI processes, GateAI enhances confidence in its solutions, empowering professionals to harness AI’s full potential in their tax work. The combination of AI’s speed and accuracy with human judgment creates a powerful tool that doesn’t replace professionals but rather enhances their capabilities, paving the way for a more effective and responsive tax consulting industry.
Sources:Chartered Institute of Taxation UK annual conferenceAccountancy Age
