How tax firms can turn AI investments into measurable productivity and profitability gains
Highlights
- An intentional AI strategy is now a competitive necessity for tax firms.
- The strongest ROI comes from automating high‑friction workflows first.
- Measuring success through clear frameworks and staged adoption matters.
Let’s address the elephant in the room: Despite mounting evidence about the transformative potential of AI automation, many tax and accounting firms remain on the sidelines.
While 79% of tax professionals believe AI will have high or transformational impact within five years, only 37% of firms have invested in new AI-powered technology in the past 12 months according to respondent data in our Future of Professionals Report 2025. So, what’s driving this hesitation when the proof points are stronger than ever?
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Why having an AI adoption strategy matters
The ROI of AI adoption: Leaders vs. laggards
SMART framework for measuring software performance
Steps in your tax and accounting firm’s AI journey
Where to focus your AI investment strategy: 3 high-impact workflow areas
Planning your AI adoption strategy for 2026
Why having an AI adoption strategy matters
Here’s what Thomson Reuters survey data identifies as the main barriers to accounting firm AI investment among professionals:
- Lack of time/resources
- Cost of implementation
- Complexity of remaining unautomated workflows
But here’s what’s interesting: These aren’t insurmountable technical problems, but rather strategic planning challenges that successful firms have already learned to navigate.
Without a well-thought-out AI adoption strategy, firms risk plateauing after initial efficiency gains because AI remains confined to making existing tasks faster rather than enabling new value creation. A well-defined roadmap ensures that AI adoption aligns with your firm’s broader goals, creating a multiplier effect on productivity and profitability.
The ROI of AI adoption: Leaders vs. laggards
Technology adopters can be best segmented into these five categories: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. In the tax profession, data shows that innovators and early adopters — firms that proactively map AI adoption strategies to their overall objectives — are projected to unlock up to $52,000 in value per professional annually, compared to just $13,000 for laggards.
With AI solutions starting to go mainstream, 2026 represents a critical inflection point. Firms that fail to act will struggle to attract talent and keep up with competition, while those with a clear plan will expand capacity, multiply revenue, and strengthen competitive positioning.
SMART framework for measuring software performance
There’s no single formula for developing a successful AI adoption strategy, but large and small businesses across several industries have found success following the SMART principles:
- Specific – Identify the most pressing pain point (e.g., reducing manual data entry).
- Measurable – Define KPIs such as time saved per return or client turnaround speed.
- Achievable – Start with realistic goals and scale gradually.
- Relevant – Align AI initiatives with your firm’s overall growth strategy.
- Time-bound – Set clear timelines for pilots, rollouts, and optimization phases.
Most tax and accounting firms start with AI investments that target operational efficiency, but the real opportunity lies in reinvesting productivity gains into revenue-generating activities.
Steps in your tax and accounting firm’s AI journey
Managing a successful technology transformation can’t be perfected overnight. It’s a multi-step journey that starts before a product is purchased and continues long after. Understanding the following stages can help you plan strategically: In fact, there’s a good chance your firm has already started:
- Awareness & exploration – Firms begin learning about AI capabilities and potential benefits.
- Evaluation & vendor selection – Assessing solutions and choosing the right technology partners.
- Pilot / proof of concept – Testing AI tools in controlled environments to validate ROI.
- Implementation & rollout – Deploying AI across workflows and integrating into daily operations.
- Optimization, scale & innovation – Refining processes, scaling adoption, and driving continuous improvement.
Knowing your firm’s position on this curve is critical for planning the next step toward measurable ROI.
Where to focus your AI investment strategy: 3 high–impact workflow areas
Not all workflows deliver equal ROI from automation. To maximize impact, prioritize areas with the highest manual burden and client interaction. Here are the key stages and opportunities:
Document gathering (Auto-gather & prepare)
Current state: Admins often collect client data manually through web portals, PDF organizers, email, text, or phone calls.
Automation opportunity: Look for quick-click document request tools with tracking that leverage OCR with AI to extract data from source documents and organizers. This eliminates repetitive follow-ups and accelerates data readiness for tax preparation.
Preparation
Current state: Admins or tax staff manually enter extracted data into tax software — a time-consuming and error-prone process.
Automation opportunity: Identify a tool that uses OCR and AI-driven workflows to automatically extract and flow data into review systems or tax software. This reduces manual entry, minimizes errors, and speeds up preparation.
Delivery & filing (Auto-deliver & file)
Current state: Professionals review returns, recap with clients, and manage wet/PIN signatures before filing. Filing involves tracking acceptance and notifying clients.
Automation opportunity: Seek out a solution that enables one-click delivery of returns with a seamless e-signature process and automates e-filing with integrated status tracking. This shortens turnaround times and improves client experience.
Why these areas matter
Solutions like UltraTax CS, SafeSend, and SurePrep 1040SCAN already demonstrate measurable gains when used together. They save firms an average of 10 minutes per return during the Gather phase, 25 minutes during preparation, and 14 minutes during tax return delivery. By focusing on these high-impact workflow areas, firms can free up time and capacity for advisory services and revenue-driven activities
Planning your AI adoption strategy for 2026
AI might not solve your tax and accounting firm’s efficiency goals overnight. But with a clear AI adoption strategy, committed leadership, and operational alignment, it can transform your firm’s capacity, profitability, and client experience. The firms that act now will be poised to lead the market for years to come.
Want to learn more? Check out our webinar: “Defining ROI: How tax firms are justifying AI investments” for more insights, stats, and hands-on guidance from software experts. Register today to see how your practice can maximize its future tech spending.
