As the tax deadline approaches, an increasing number of filers are turning to chatbots powered by artificial intelligence for assistance with their tax returns. However, experts advise caution when using generative AI for tax advice. While some individuals express trust in AI chatbots for tax-related tasks, experts warn against solely relying on these tools for accurate and personalized recommendations.
There are several AI-powered options available to taxpayers seeking assistance with their taxes, including popular chatbots such as ChatGPT from OpenAI, as well as offerings from TurboTax, H&R Block, and the IRS. These chatbots provide guidance on basic payment and collection notice questions, with the IRS reporting successful interactions with millions of taxpayers since rolling out AI-driven technology in 2022.
TurboTax has introduced the “Intuit Assist” chatbot, designed to enhance the software’s capabilities for simplified filing and more accurate returns. Similarly, H&R Block has launched the “AI Tax Assist” chatbot to aid DIY filers in the tax preparation process. While these chatbots aim to streamline tax-related tasks, experts suggest that they may not be entirely reliable for filing tax returns due to limitations in specificity and updated data.
According to Subodha Kumar, a professor at Temple University, AI chatbots have shown promise in addressing general tax questions but may struggle with providing accurate responses to more specific inquiries. For instance, filers using ChatGPT may encounter incorrect answers to tax-related queries due to the chatbot’s lack of tax-specific training and outdated data. With different knowledge cutoff dates depending on the chatbot version, there is a risk of providing inaccurate information to taxpayers.
Furthermore, experts emphasize the importance of data security when using AI chatbots for tax-related activities. Plugging financial information into these chatbots could pose potential risks of data leakage, prompting concerns about protecting sensitive personal data. While AI chatbots can be useful for generating general tax insights, experts advise verifying the information received from these tools by cross-referencing it with official sources or consulting with a tax professional.
Despite the current limitations of AI chatbots in providing personalized tax recommendations, experts are optimistic about the future potential of these tools. With advancements in training models specifically tailored for tax-related inquiries, the next generation of tax-specific AI chatbots could offer more accurate and reliable assistance to filers. While AI chatbots remain a valuable educational tool, experts emphasize the importance of safeguarding personal information and verifying responses obtained from these chatbots to ensure accuracy.
While AI chatbots present an innovative and convenient option for tax guidance, filers should exercise caution and seek additional verification when using these tools for tax-related tasks. By remaining vigilant about data security and staying informed about potential limitations, individuals can leverage the benefits of AI chatbots while minimizing risks associated with inaccurate or outdated information.