The tax and accounting professional’s guide to everything AI

At a high level, artificial intelligence (AI) refers to a wide range of technologies that simulate human intelligence and are programmed to think and learn like humans. With usage in full swing, there is virtually no profession that AI will leave untouched.

Generative AI refers to a class of artificial intelligence systems designed to generate new and original content, often mimicking human-like capabilities. Unlike traditional AI models that rely on pre-programmed responses or patterns learned from data, generative AI can create novel outputs independently.

From a tax and accounting professional’s perspective, there is no question that the benefits of AI are significant, especially when it comes to automating routine tasks, enhancing data analysis, and improving accuracy and compliance. However, as publicly available generative AI platforms — like ChatGPT — gain momentum, there are concerns about accuracy, security, and privacy.

To mitigate these concerns, forward-looking accountants are relying on AI-powered tax research solutions grounded in data from trusted experts and reliable sources, as opposed to public options that pull information from across the internet.

Enter Checkpoint Edge with CoCounsel, a chat-based generative AI (GenAI) tax research assistant that ensures fast, easy-to-read answers grounded in reliable and vetted sources, allowing tax and accounting professionals to:

• Save time with internal processes. Accelerate workflows by relying on generative AI as an efficient research tool. Vet tax positions, tackle questions, and empower junior staff to find answers.
• Increase productivity. Conquer complex tax questions faster than ever. Bolster your tax and accounting knowledge without poring over multiple references and layers of content.
• Improve communication. Answer questions in real time while providing timely and accurate insights, enhancing the way you deliver information and decision making.
• Upskill staff by giving them a better way to start their research.

While there is a lot that generative AI can do for the tax and accounting industry, there are some things it cannot. Rather than replacing human professionals, generative AI unlocks capabilities and shifts time away from mundane tasks. This shift enables a focus on higher-value activities such as providing clients with data-driven insight, offering strategic advisory services, and strengthening the all-important human connection.

Today’s tax and accounting professionals face a variety of headwinds. From a complex regulatory environment to growing client demands and a shrinking talent pool, many are struggling with capacity constraints, limited resources, and an intense need to upskill junior staff quickly.

AI unlocks an opportunity to tackle these challenges head-on, particularly regarding transforming workflow processes and empowering staff to support clients on their own and with confidence. How? AI-powered tax solutions can automate traditional tax preparation workflow and provide fast, trusted answers on ever-changing tax regulations. An AI-powered tax research solution like Checkpoint Edge with Co-Counsel is foundational to this shift.

For most tax and accounting professionals today, the most time-consuming part of tax research is the initiation stage, which includes figuring out which code sections apply, building foundational knowledge of a topic, and efficiently formulating an effective answer or strategy for a client or organization.

At Thomson Reuters, we’ve consistently heard from customers that they love Checkpoint Edge’s built-for-purpose content and tools, but locating what they need was too difficult. Junior staff, in particular, are often not trained to perform tax research and struggle with well-formed searches, especially when working in unfamiliar areas. That’s the impetus behind the development of Checkpoint Edge with CoCounsel.

Tax and accounting staff frequently default to using Google because that’s where they’re comfortable. However, we know relying on answers from across the internet can be problematic for a variety of reasons. In addition, a Google search is often not enough on its own due to how fast and frequently tax policy is changing.

Through generative AI, Thomson Reuters is transforming how tax research is done by providing users with a better starting place. In one motion, you can find easy-to-digest answers synthesized from trusted Checkpoint Edge resources and citations for fast verification. AI-generated responses presented alongside supporting Checkpoint materials reduce research time and propel users forward.

The best time to integrate AI research software into your firm is sooner rather than later. Staying ahead of technological advancements is crucial in today's rapidly evolving business environment. The early implementation of AI research tools can significantly enhance your firm's efficiency, accuracy, and competitive edge. These tools not only streamline complex processes but also provide deeper insights into data, enabling better decision making. By adopting AI technology now, your firm can adapt to the changing landscape, optimize operations, and, ultimately, deliver superior service to clients.

However, as tax and accounting professionals, we've come to dread installing and implementing new software as it often means losing the ability to access your work, weeks of tutorials, and seemingly endless troubleshooting. Certainly, implementing an AI-enabled research solution is no different, given its enormous capabilities, right? Wrong.

Checkpoint Edge with CoCounsel is a cloud-based solution, so when you sign up online, that's it. You're in. You're done. There is nothing to install or implement, so to speak, meaning you can go from signing up to a fully enabled user in a matter of hours. This solution is intuitive to use — there’s no need for training. We’ve designed it to be usable from the start, allowing your firm to take advantage of powerful AI technology immediately.

So, with almost no setup time required, there is no better time to be evaluating AI solutions for your firm than now.

As you begin your journey toward implementing an AI-driven tax research solution, consider these three tips. 

1. Identify your biggest pain points. Before beginning the search for AI-enabled research, ask your firm, "What are we hoping AI will do for us?" Identifying your needs will help determine what features you should be looking for in a solution and whether AI is the right answer.
   
   Instead of looking for a solution that has AI, ask yourself if AI can solve your pain points. When considering the integration of AI into your operations, it's crucial to identify the specific challenges it can address. For instance, AI can significantly enhance the efficiency of new team members by streamlining their access to accurate information. This capability not only speeds up the research process but also ensures they are working with the correct data right from the start. By leveraging AI in this way, staff can quickly become proficient in their roles, effectively using technology to boost their skills and confidence in handling firm resources
   
   
2. Assess the vendor. What is the history of the vendor? What are their capabilities? What are other firms saying in their reviews of this vendor? Doing the work upfront to answer these questions will serve your firm in the long run — and having a good working relationship with your software vendor will make all the difference.
   
   Make sure your vendor is trustworthy, responsive, and accessible. You also need to consider how new the competitor is in the market. New AI products, while shiny on the surface, are often not as sophisticated as ones that have had time to collect data and fine-tune their algorithms. 
   
   Thomson Reuters stands at the forefront of leveraging generative AI thanks to our extensive, purpose-built, and meticulously curated proprietary content databases. These resources have been refined over decades, ensuring we are exceptionally equipped to harness the full potential of generative AI technologies. This deep foundation enables our company to provide powerful, AI-driven solutions like Checkpoint Edge with CoCounsel, enhancing the efficiency and effectiveness of tax and accounting research for professionals focused on delivering the best outcomes for their clients.
   
   “From a time-saving perspective … I can easily see it cutting the time in half, maybe even more,” said
   Pete Mayolo, Owner and President of Mayolo and Associates, when asked about Checkpoint Edge with CoCounsel.
   
   
3. Get to know the solution. In addition to researching the vendor, it's worth your time to do the homework on the solution itself. This point may seem obvious, but we point it out because it relates to assessing your firm's needs. After identifying the needs of your firm — and verifying AI is the proper solution — look for specific features within the solution that can solve them. Live demos, a free trial, or asking for a walkthrough are all great ways to gain some familiarity and decide whether the solution is the right one for you.

For example, let's say your firm is skilled in finding the answers to their questions, but they need more information to inform their work. Checkpoint Edge with CoCounsel has Concept Markers that highlight related information.

By the same token, be critical of the features you come across. Some software solutions may have a list of features longer than a legislation book, but it doesn't matter if the features are not usable or adding value to your firm. When looking at different products, assess whether they make a researcher smarter. If the answer is no, it's not worth the firm investment. But if the answer is yes, then note that as a solved pain point. Knowing the ins and outs of software before you make the investment allows you to assess various features and make informed decisions for your firm.

Get to know Checkpoint Edge with CoCounsel

By reducing long research sessions into simple tasks, Checkpoint Edge with CoCounsel uses AI-assisted research to offer tax and accounting professionals:

• The answers you need, fast. Improve the speed of the research phase by finding the summarized, easily verifiable answers you need quickly, reducing the need to start research outside of Checkpoint Edge.
• Authoritative and trusted content. Increase confidence in AI-assisted answers with links to relevant editorial content and source materials from a broad collection of data sets and expert knowledge of Checkpoint Edge.
• Practical delegation in workflow. Enable senior staff to redirect their efforts toward higher-value work while junior staff learn and develop good question techniques with AI-assisted research on Checkpoint Edge.

As we’ve discussed, AI enables machines to perform tasks previously thought to require human intelligence. Data analytics, on the other hand, is a broad term used to describe the process of collecting data and then finding meaningful insights from it.

AI has an amazing capability to analyze data. From a tax and accounting perspective, advanced analytics like predictive modeling and forecasting can help anticipate future trends and outcomes based on historical data. This technology enables tax and accounting professionals to identify potential risks, opportunities, and market trends — an invaluable service in today’s competitive landscape.

The power of systems like Checkpoint Edge with CoCounsel comes from analytics and AI, which can enhance the ability to provide strategic advisory services and actionable insights that drive business growth.

On the surface, integrating AI into your daily workflow can seem complicated and overwhelming. Yet, when it’s broken down, AI has the power to transform how your firm does research, giving you faster, better results and more time for higher-value tasks.

It’s never been a better time for your firm to take advantage of new ways to explore tax questions and ensure you’ve got the best information to make informed decisions. 

Learn more about Checkpoint Edge with CoCounsel, or contact us to speak with a knowledgeable sales rep and see how you can harness the power of AI.