Are AI tools making tax professionals less competent?

AI News


In April 2024, I covered the risks and benefits of leveraging artificial intelligence tools to support companies’ corporate tax risk management efforts. This applies equally to Value Added Tax (VAT) and other government legislation-driven schemes.

We now know more about the impact that increased reliance on these solutions is having on people. This should raise concerns not only for organizations whose internal functions are independent, but also for those that rely on external consultants.

I would like to start by noting the cognitive damage being done and highlighting it as an everyday example.

I’ve been driving for years. Beyond that skill, I know how to fill up a car with gas and unlock the hood. We cannot guarantee that we will be able to open the hood of all cars. Do you want to replace the wheels? Fairly capable.

When we tried to get customers to fill up their own petrol in the UAE, there were cases where people didn’t know how to do it. Before you laugh at that memory, I’ll confess that I’m a Luddite, citing various examples. How can this happen?