How Generative AI is Transforming the Tax Landscape in 2024

How Generative AI is Transforming the Tax Landscape in 2024

Remember those futuristic movies where robots handled complex tasks with ease? Well, the future is closer than you think. Last year we saw a surge in generative AI (GenAI), particularly large language models (LLMs) like GPT-3. 2024 promises even more significant advancements in this game-changing technology. But what does this mean for tax professionals? In his recent Tax Notes publication, our CEO Benjamin Alarie delves into the predictions and explores how AI is reshaping the tax landscape. Download the article here.

Here are the key takeaways:

2023:

• Generative AI became a hot topic discussed in tax conferences, legal and accounting firms, and even popular media.
• Concerns arose about the limitations of LLMs like GPT-3, with terms like "stochastic parrot" used to describe potential shortcomings.
• While some AI experts like Geoffrey Hinton warned about the dangers of advanced AI, others remained optimistic about its potential benefits for tax professionals.
• Major tech companies and startups like OpenAI, Anthropic, Microsoft, Meta, Google, Amazon, and Blue J made significant advancements in generative AI, releasing new models and integrating them into various services.

2024:

• Foundational Models Will Radically Improve: Expect significant advancements in the reasoning abilities, context windows, and multimodal capabilities of foundational models such as GPT-5
• AI Assistants Like Microsoft’s Copilot Will Go Mainstream: Tools like Copilot will become integral to office productivity, altering day-to-day tasks of tax professionals
• Tax Research Dominated by Generative AI: advancements in AI models will revolutionize tax research, making sophisticated tax analysis more accessible and enabling tax experts to focus on strategic roles in transactional tax planning and risk management.

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Preparing for the AI-Powered Future with Ask Blue J

While generative AI offers exciting possibilities, it's crucial to remember that it's a tool, not a replacement for human expertise and judgment. Tax professionals need to develop the skills to leverage AI effectively in their tax workflow and ensure ethical implementation.

Interested in exploring the intersection of Tax and AI? Watch our on demand webinar "Revolutionize Your Tax Team’s Workflow with Generative AI"

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Ask Blue J: Generative AI for Tax Experts

Leveraging an extensive USA and Canadian tax content database and the most advanced large language models, Ask Blue J generates reliable and verifiable tax answers in seconds.

Here's how Ask Blue J can help you:

• Research with confidence: Ask Blue J utilizes generative AI to analyze vast amounts of data and provide comprehensive answers backed by relevant sources. You can easily verify the answer with the highlighted passages within each document.
• Go deeper in your research: Explore additional related materials like cases, documents, statutes, and regulations surfaced by Ask Blue J's knowledge graph for a deeper understanding of your tax question.
• Clarify your understanding: Ask Blue J questions in a natural conversational style. Its intuitive chat interface lets you delve deeper and build a robust response to your tax query.
• Expedite your drafting: Communicate your research clearly and concisely. With a click, create a memo or email summarizing your findings, customized to your preferences and audience.