GENERATIVE ARTIFICIAL INTELLIGENCE IN TAX ACCOUNTING FIRMS

The implementation of generative artificial intelligence tools such as ChatGPT in businesses worldwide has raised several concerns regarding privacy, authenticity, reliability, jobs, national security, and many other considerations of a positive and negative nature. Of interest and concern to the accounting profession, specifically the tax department and tax professional, are the impact on certain regulatory and professional ethical standards such as client confidentiality, due professional care, staff supervision, and job security at the entry-level. While increased efficiency, reduction of repetitive and tedious tasks, improved client communication, and the increased knowledge base accessible in a fraction of the time compared with the human mind could all have a positive impact on firm revenue and profitability, the risk to firms for violating ethical standards, subordination of judgment, and loss of jobs cannot be ignored. Research conducted at a regional accounting firm in Southern California revealed a desire to implement tools such as ChatGPT, but only after careful consideration of revisions to firm policies, procedures, and guidelines, disclosure to clients, and staff education and training were addressed. Findings revealed that the most common use now is assisting with tax research and drafting client communications such as emails and memos. Participants agreed that these new technological advances should be considered tools, not replacements for professional experience, knowledge, and judgment. The maintenance and protection of client privacy was of primary concern. Equally concerning was the risk to the standard of due professional care and the need to ensure accuracy, reliability, and thoroughness of work product through proper supervision in no different manner than what is currently employed. New entrants need to be reassured that using these tools will offer advantages such as opportunities to pursue more challenging and interesting work earlier in their career, alleviating early concerns about job security.