Professional bodies are working together to issue topical guidance to their members on how to use artificial intelligence (AI) responsibly in tax work.
The seven co-authors of Professional Conduct in Taxation (PCRT) have updated their joint code to help members apply their ethical principles when using AI tools.
PCRT sets out the principles and standards of conduct that all members of author societies and students must follow when carrying out tax work.
Who is the AI guidance for and what does it include?
This updated guidance is aimed at members or regulated businesses that are using or considering using AI as part of their work providing UK tax advice that affects the tax affairs of individuals or organizations. This includes all members working in practice, in business, and in public sector bodies or government departments.
The new guidance covers several areas including:
- Maintaining integrity when using AI tools
- Reduce risk of bias and exercise due diligence
- Complying with client data confidentiality
- Recognize the limitations of AI tools and the benefits they bring
- Different examples of protection when applying the basic principles to the use of AI
Why was PCRT revised?
The issue of artificial intelligence is now regularly emerging in tax and other legal work, raising concerns about several aspects of its use.
Frank Haskew, Chairman of the PCRT Group, said: “The development of AI tools continues to advance rapidly, and the application of these tools when conducting tax operations is also increasing.
“PCRT remains the UK tax standard and our ethical principles remain consistent regardless of whether AI is used as part of our operations.
“PCRT institutions recognize that members may not know how to apply ethical principles when using AI tools, and newly published topical guidance materials are designed to assist members in applying these principles.”
Key points about artificial intelligence for tax professionals
As a tax professional, you are ultimately responsible for the work you create for your clients, whether or not AI tools are used in the process. That’s why it’s important to properly and diligently supervise the work in which AI tools are used.
PCRT emphasizes the importance of members using professional judgment, and this also applies to the use of AI.
One of the key takeaways from this guidance is that “customers expect to be able to trust the services provided by members.” Therefore, AI-generated data must be treated with care and not “blindly accept the output.”
And when it comes to confidentiality, it states that “data input into publicly available AI models must be anonymized and generic to ensure that the client cannot be identified from the information and that client confidentiality is maintained.”
Who are the co-authors of PCRT?
The seven professional bodies that jointly develop tax-related professional acts are:
- Association of Accounting Technologists (AAT)
- Association of Certified Public Accountants (ACCA)
- Association of Tax Technicians (ATT)
- Chartered Institute of Taxation (CIOT)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Institute of Chartered Accountants of Scotland (ICAS)
- Society of Trust and Estate Practitioners (STEP)
