AI-Powered Tax Research

Summary:

AI-powered tool enables the firm not only to forecast tax results with over 90% accuracy but also to pose intricate tax-related inquiries with precision.

Client:

KPMG is a multinational network of independent professional services firms offering audit, legal, tax, and advisory services and is recognized as one of the Big Four accounting organizations. Headquartered in Amstelveen, Netherlands, with executive offices in New York City, KPMG operates across 143 countries and territories, employing over 273,000 partners and staff across its member firms globally. The UK division reported a revenue of £2.96 billion for the 2023 fiscal year.

Problem Statement:

Tax authorities are rapidly reshaping the tax landscape by embracing new tax technologies capable of analyzing and managing vast amounts of data. This trend is increasing accountability among tax professionals. To remain competitive, tax professionals must leverage AI’s potential and its application to tax.

In 2023, KPMG outlined a strategic investment plan of $2 billion over the next five years in AI and cloud services. Recognizing the transformative power of AI, KPMG aims to integrate it into their audit, tax, and consulting sectors. The primary objective is to revolutionize tax research, enabling KPMG to predict tax outcomes and address tax inquiries effectively.

Results:

• A significant reduction in the time devoted to searching for and scrutinizing tax legislation and case law.
• Over 90% accuracy in predicting tax scenario outcomes for further to review by employees.
• The AI-powered tool enables KPMG’s tax experts to allocate more time to advising clients on intricate and time-sensitive matters, rather than being occupied with administrative tax tasks.

AI Solution Overview:

Leveraging a vast repository of US tax information and large language models, Ask Blue J generates accurate and verifiable tax responses within seconds. It utilizes OpenAI’s GPT models, fine-tuned specifically for tax purposes. This advancement enables the firm not only to forecast tax results but also to pose intricate tax-related inquiries with precision.
Unlike general-purpose generative AI models, Ask Blue J produces outcomes that tax experts can validate and rely on. Equipped with protections against hallucinating responses, the platform delivers verifiable answers accompanied by links to relevant source materials. To maintain accuracy, Ask Blue J is trained to acknowledge instances where it cannot generate an answer backed by authoritative sources.

References: 

1. Case Study: KPMG’s Visionary Leap into AI. https://aiexpert.network/case-study-kpmgs-visionary-leap-into-ai/KPMG and Blue J launch AI tax tool. https://www.accountancyage.com/2024/02/22/kpmgand-blue-j-launch-ai-tax-tool/
2. KPMG UK and Blue J expand strategic alliance to introduce generative AI into tax tools. https://kpmg.com/uk/en/home/media/press-releases/2024/02/kpmg-uk-and-blue-j-expand-strategic-alliance-to-introduce-generative-ai-into-tax-tools.html
3. KPMG UK adopts AI tool for tax functions. https://www.internationaltaxreview.com/article/2cvnkoisiz49tte0dyozk/direct-tax/kpmg-uk-adopts-ai-tool-for-tax-functions
4. Introducing Ask Blue J, the Groundbreaking Generative AI Platform for Tax. https://www.businesswire.com/news/home/20230823880057/en/Introducing-Ask-Blue-J-the-Groundbreaking-Generative-AI-Platform-for-Tax

Industry: Accounting

Vendor: Blue J
Client: KPMG
Publication Date: 2024