Tax Industry AI adoption rates rising

Author

Edna Garcia
February 01, 2025 • Estimated Reading Time: 6 minutes

The Growth Ledger

Hey — It’s Edna.

Welcome to this research-backed edition of The Growth Ledger, where we break down the trends shaping the future of tax professionals.

This week, we’re tackling a critical question: Is AI in tax real progress or just industry hype?

Only 8% of tax firms currently use generative AI, yet corporate tax teams are adopting it at a growing rate. The shift is happening—but it’s not happening all at once. Early adopters will gain an edge, while those waiting for “perfect” AI risk falling behind.

Inside This Issue:

  • AI adoption rates: Where does your firm stand?

  • How AI is actually being used: From Big 4 firms to small practices.

  • What’s holding firms back? Understanding the skepticism.

  • How to future-proof your practice: Practical next steps.

Let’s get into it.

AI in Tax: Progress or Hype?

Tax professionals aren’t known for jumping on trends. Precision and risk mitigation drive this industry. So, when AI enters the conversation, many ask: Is this just buzz, or are we witnessing a real shift?

The latest research points to a measured but inevitable transition—and firms that move early will position themselves ahead of the curve.

AI Adoption: Where Do You Stand?

Despite the headlines, only 8% of tax firms actively use generative AI tools like ChatGPT, Checkpoint Edge, or CoCounsel.

However, this number is set to grow:

  • 13% of firms plan to adopt generative AI within the next year.

  • 34% of corporate tax teams are considering AI integration in 2025, up from 21% in 2023, according to CPA Practice Advisor.

The bottom line? AI adoption is still in early innings, but firms that wait too long risk playing catch-up.

How Firms Are Actually Using AI

Task Automation Means More Than Just Efficiency

  • 77% of tax professionals believe AI can handle repetitive tasks like data entry, document review, and tax prep, as reported by Thomson Reuters.

  • AI is already helping with anomaly detection (42% of firms), audit risk prediction, and compliance tracking, according to Savant Labs.

Who’s Leading the Adoption?

How Often is AI Used?

Among firms that have adopted AI, 42% use it daily, while 31% deploy it weekly, according to Thomson Reuters. While AI isn’t replacing tax professionals, those leveraging it are already seeing efficiency gains and shifting toward more advisory-driven roles.

AI Skepticism: The Barriers Holding Firms Back

The Benefits are Clear

  • 84% of tax professionals say AI improves productivity, saving 4+ hours per week for strategic work, according to Thomson Reuters.

But So Are the Concerns

This isn’t just a technology gap—it’s a trust gap. The firms that move strategically—vetting AI tools for accuracy and security—will be the ones that gain a real competitive edge.

Some Predictions about the Future of AI in Tax

AI Won’t Be Optional for Long

  • 56% of corporate tax teams expect external advisors to use AI by 2026, according to CIAT.

AI-Driven Premium Services

  • 40% of firms expect to charge higher fees for AI-powered tax services like real-time optimization, as reported by TaxGPT.

Regulatory Complexity Will Push AI Forward

AI adoption isn’t just about efficiency—it’s about staying relevant as client expectations shift toward real-time insights and predictive tax strategy.

How to Future-Proof Your Firm

  • Start with Low-Risk AI Use Cases – AI-powered compliance automation and anomaly detection are easy wins that don’t require overhauling operations.

  • Measure ROI from Day One – Track time saved and efficiency gains to justify further AI investment.

  • Educate Clients on AI-Powered Insights – Advisory services that leverage AI for tax optimization and real-time scenario planning will set firms apart.

The role of tax professionals extends far beyond compliance—it's about providing strategic insights that help clients navigate an increasingly complex landscape. AI isn’t here to replace that expertise; it’s a tool that, when used effectively, can enhance the value you deliver.

Where does your firm stand?

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Share your perspective—we’d love to hear how you’re navigating this shift.

Until next time,
Edna
The Growth Ledger Team