Artificial intelligence has become an integral part of our lives, and one of its most impressive applications is ChatGPT. Since its launch just a few months ago, ChatGPT has gained millions of registered users and has proven to be a powerful tool with various applications. One area where ChatGPT has the potential to make a significant impact is tax processing and accounting.
Tax and accounting tasks often involve repetitive and manual work, such as reviewing invoices or tracking expenses. These tasks can be automated with minimal effort, and research suggests that more than 50% of the jobs performed by tax professionals could be impacted by AI tools like ChatGPT.
Although ChatGPT is not perfect and may make mistakes when faced with unfamiliar subjects, its ability to generate natural and grammatically correct responses is impressive. However, the accuracy of these answers is still a question mark.
With proper training and specialization in specific sectors, the accuracy of ChatGPT’s responses could potentially rise to over 98%. This raises the question of whether tax authorities, such as HMRC, would consider returns that are 98% accurate as acceptable. If so, tax professionals could benefit from an AI “helper bot” that automates the majority of tax tasks and only seeks human intervention for cases it is unsure about. This would save a significant amount of time and eliminate many errors that are currently caused by human oversight.
As ChatGPT continues to gather and process vast amounts of data, it will undoubtedly improve its accuracy and knowledge base. In fact, the latest version of ChatGPT performs remarkably well on tests, even surpassing human performance in certain areas. This suggests that generative AI has the potential to outperform human professionals in various fields, including tax processing.
However, it is important to note that human oversight and quality control will still be necessary for the foreseeable future. ChatGPT should be viewed as a tool to augment and complement the human role, rather than replace it entirely. By automating monotonous tasks, tax professionals can shift their focus to more complex issues and address the non-binary and interpretative aspects of tax processing.
The time saved through AI automation can be utilized for more strategic and creative tasks, allowing tax professionals to add value in areas that require human expertise. The days of spending hours manipulating spreadsheets and performing repetitive tasks are coming to an end. AI tools like ChatGPT provide cost-effective solutions compared to traditional tax software, making them accessible to businesses of all sizes.
In conclusion, ChatGPT has the potential to revolutionize how we process tax. By automating routine tasks and providing accurate responses, it can save time, reduce errors, and free up tax professionals to focus on more complex and strategic aspects of their work. With proper training and integration, ChatGPT can be a transformative game-changer for the tax industry, allowing professionals to leverage their expertise while AI handles the grunt work. It’s time to embrace the possibilities and switch to “manager mode” with ChatGPT as our trusted assistant.
Camilla Formicola
