How to build a modern AI tax research strategy: A mid-size firm’s checklist

Mid-sized tax and accounting firms face a critical inflection point. While larger firms leverage massive resources and smaller practices embrace agility, medium-sized firms must navigate the complex challenge of staying competitive without sacrificing the quality and personalized service that defines their client relationships.

This is where artificial intelligence transforms from a “nice-to-have” into a strategic imperative. But here’s the challenge: not all AI solutions are created equal. The difference between purpose-built, professional-grade AI and generic alternatives can determine whether your firm gains a competitive edge or simply adds another tool to an already complex technology stack.

This checklist provides a practical framework for building an AI research strategy that addresses your firm’s unique challenges while positioning you for sustainable growth in an increasingly automated profession.

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Choose the right AI solution for your tax and accounting firm

Wondering where to start? Begin by selecting an AI tool built specifically for tax and accounting. From domain expertise and data quality to reliability and ROI, understand what’s most important for your team so your firm invests in technology that truly supports your goals.

• • Domain expertise: Your AI solution should be developed with direct input from experienced tax and accounting professionals who understand the nuances of your daily challenges. Generic AI tools may handle basic tasks, but they lack the specialized knowledge required for complex tax research, regulatory compliance, and client advisory services.
  • Data quality: The foundation of reliable AI lies in the data it’s trained on. Ensure your chosen tool uses vetted, authoritative data from trusted sources like tax codes, IRS guidance, and legal precedents. Unlike generic AI that pulls from the open web, purpose-built solutions curated specifically for tax and accounting deliver more precise answers and reduce the risk of costly errors.
  • User-centric design: The best AI solution integrates seamlessly with your existing workflows rather than forcing you to completely restructure your operations. Look for tools that can adapt to your firm’s specific processes, client needs, and service offerings.
  • Continuous learning and improvement: Tax law evolves constantly, and your AI solution should evolve with it. Choose systems that regularly update their models to reflect changes in regulations, compliance frameworks, and industry standards. This adaptability ensures your outputs remain accurate and relevant in a shifting regulatory environment.
  • Reputation and history: Partner with a provider that has a strong reputation and proven track record in serving the tax and accounting industry. Established providers offer the stability and ongoing support critical for professional services firms that can’t afford system failures during peak periods.
  • Initial product stage: Avoid minimum viable products (MVP) or early-stage solutions that may have functionality gaps. Select mature products with proven reliability and comprehensive feature sets. Your firm’s reputation depends on consistent, accurate results.
  • Cost and ROI: Evaluate both upfront costs and potential return on investment. Consider how modest investments in the right AI technology can drive measurable efficiency gains, enable higher-value advisory services, and support revenue growth. The question isn’t whether you can afford AI—it’s whether you can afford to fall behind competitors who are already leveraging it effectively.

Implement AI in your tax workflows

Once you’ve chosen your AI solution, the next step is integration. This list offers practical tips for embedding AI into your daily operations to boost efficiency and enhance client service.

• • Automation-first model: Rather than layering AI tools on top of existing processes, integrate automation directly into your core workflows. AI-native firms that embed these technologies from the ground up operate with efficiency at their core, delivering faster and more accurate results while freeing staff to focus on high-value client interactions.
  • Agentic AI: Leverage advanced AI systems that can act autonomously on your behalf. These solutions automate routine but time-consuming tasks like data entry and compliance checks while conducting in-depth analyses of complex data sets. The result is actionable insights that empower your team to respond more effectively to client needs.
  • Training and support: Provide comprehensive training to ensure your staff can maximize AI tool effectiveness. Remember that successful implementation depends not just on the technology but on your team’s ability to use it strategically. Invest in ongoing education to keep pace with evolving capabilities.
  • Pilot programs: Start with controlled pilot programs to test AI solutions before full-scale implementation. This approach allows you to identify potential issues, refine processes, and demonstrate ROI before expanding usage across the firm.

Monitor and optimize performance

AI success depends on continuous improvement. Learn how to track performance, gather feedback, and refine your strategy to ensure long-term value and adaptability.

• • Performance metrics: Track key indicators that matter to your firm’s success: time savings on research tasks, accuracy improvements in compliance work, client satisfaction scores, and revenue from new advisory services enabled by AI efficiency gains.
  • Client feedback: Regularly gather input from clients to understand how AI enhancements are improving their experience. Use this feedback to refine your approach and address any concerns about AI’s role in your service delivery.
  • Continuous improvement: Regularly update your AI strategy based on performance data and client feedback. The firms that stay ahead are those that continuously evolve their approach rather than treating AI implementation as a one-time project.

Ensure data privacy and compliance

In a profession built on trust and confidentiality, data privacy and regulatory compliance are non-negotiable. As you integrate AI into your firm, it’s essential to uphold the highest standards of security and governance. Here are the most important considerations:

• • Robust data privacy measures: Implement comprehensive security protocols including encryption, access controls, and audit trails to protect sensitive financial and client information. In a profession where confidentiality is paramount, your AI solution must meet the highest security standards.
  • Regulatory alignment: Choose AI solutions designed specifically for tax and accounting that embed compliance into their core design. Professional-grade tools incorporate data protection regulations and accounting-specific safeguards from the outset, reducing risk and providing peace of mind.
  • Regular audits: Conduct ongoing audits to ensure continuous compliance and data security. This proactive approach helps identify potential issues before they become problems and demonstrates your commitment to protecting client information.

Your strategic advantage awaits

Building a modern AI research strategy represents a strategic investment that can significantly enhance your firm’s capabilities while addressing the core challenges facing mid-sized practices today. By following this checklist, you’re not just adopting new technology—you’re positioning your firm to deliver faster, more accurate insights, improve client service, and maintain competitive advantage in an increasingly automated profession.

Ready to take the next step? Explore how CoCounsel Tax, our purpose-built agentic AI assistant, can help your firm unlock precision, efficiency, and growth through AI solutions built on decades of trusted expertise in tax and accounting.

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