H&R Block and OpenAI Join Forces to Transform Tax Preparation
Increasing Use of AI in Tax Preparation
The landscape of tax preparation is rapidly evolving, with artificial intelligence (AI) becoming an integral part of the process. Recent research reveals that 94% of employees and an impressive 99% of C-suite executives are aware of or currently using generative AI tools, as highlighted in a McKinsey survey. With such widespread interest, it’s clear that AI will increasingly feature in how taxes are prepared.
Rising Interest in AI Tools for Tax Filing
According to a Harris poll, 17% of tax filers have already used AI programs to assist with their tax filings. Even more striking, 45% of respondents are considering using AI for future tax preparations. This shows a significant shift, indicating that as taxpayers become more comfortable with AI, its role in tax filing is likely to expand.
To respond to this growing demand, tax preparation giant H&R Block has partnered with OpenAI. This strategic alliance aims to incorporate generative AI into H&R Block’s array of services.
Enhancing Tax Preparation with AI
The collaboration between H&R Block and OpenAI is designed to equip more than 60,000 tax professionals at H&R Block with advanced AI capabilities. This move aims to empower tax experts to offer personalized and precise support to millions of clients nationwide more efficiently.
Using OpenAI’s chatbot technology along with H&R Block’s extensive tax knowledge—especially from its dedicated Tax Institute—this initiative seeks to provide customized, real-time tax guidance. The Tax Institute consists of tax lawyers, certified public accountants (CPAs), and enrolled agents who work continuously to keep up with local, state, and federal tax code changes.
Ronnie Chatterji, Chief Economist at OpenAI, mentioned that the integration of advanced AI technology with H&R Block’s tax expertise aims to enhance the overall tax experience for hardworking taxpayers, ensuring they receive the best outcomes during tax season.
The Benefits of AI in Tax Preparation
A Powerful Tool for Tax Professionals
The introduction of AI into tax preparation serves as a “force multiplier.” It has the potential to improve both accuracy and speed in handling complicated tax situations. Scott Manuel, Chief Strategy and Operations Officer at H&R Block, noted that as tax laws and personal circumstances become increasingly complex, the demand for effective tax preparation grows.
AI tools can build confidence among self-filing clients by streamlining the tax preparation process. Moreover, the partnership with OpenAI is expected to further enhance the ability of tax professionals to provide personalized, real-time assistance.
Looking Ahead: Future of AI in Tax
The initial phase of this AI integration is set to be launched later this year, with plans for a comprehensive rollout by the 2026 tax season. This collaboration will also involve joint research efforts to study the impact of AI on professional tax preparation, with the aim of developing scalable solutions for future applications.
Context of AI in Tax Services
H&R Block’s partnership with OpenAI builds on the company’s previous efforts to integrate AI into its services. In December 2023, H&R Block introduced AI Tax Assist, a generative AI tool designed to simplify the tax filing process for consumers, freelancers, and small businesses alike. With nearly 70 million Americans filing their own taxes, such AI tools are positioned to modernize tax services significantly and underscore a broader trend toward adopting AI in tax preparation.
