Tax experts warn against relying solely on AI chatbots

As the April 15 tax deadline approaches, a growing number of taxpayers are turning to digital assistants to handle their filings. While services powered by artificial intelligence promise convenience and speed, industry professionals recommend a cautious approach.

Elon Musk’s AI Chatbot Enters Tax Assistance

“Grok can help with your taxes,” Elon Musk proclaimed in an X post on Tuesday. The generative AI chatbot, developed by Musk’s startup xAI, has been built into X under the name Grok. Musk’s message highlighted another X post by xAI’s general counsel James Burnham, who noted someone used Grok to double-check their return and received a bigger refund. “Disclaimer: This/Grok is not tax advice so always confirm yourself too,” Burnham added.

Experts Urge Verification

Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, warns that uncovering a larger refund via AI does not guarantee accuracy. O’Saben, an enrolled agent authorized to represent clients before the IRS, recommends reviewing previous years’ returns to understand any changes in refunds or balances owed.

AI Options and Tax Complexity

This filing season offers a range of AI tools—everything from Grok to ChatGPT and Claude, plus built-in chatbots in mainstream tax software. Yet new provisions in President Donald Trump’s “big beautiful bill” have added layers of complexity. Some taxpayers remain hesitant to use AI when preparing returns. A January survey of about 2,000 filers by Invoice Home found that in 2026, only 37% would consider trusting AI over a tax professional, down from 43% in 2025.

Nuance and Privacy Concerns

“Each of the areas have some nuance,” said Michael Deering, a certified public accountant and tax services leader at Mowery and Schoenfeld. Trump’s tax breaks feature income phase-outs that can diminish or eliminate benefits depending on a filer’s earnings, and AI may struggle to assess how one provision affects another.

Data privacy also looms large. O’Saben uses AI to streamline routine tasks but advises taxpayers to avoid sharing sensitive information like Social Security numbers. “You’re ultimately responsible for all of the entries on that return, and you sign a statement at the bottom” saying it’s correct to the best of your knowledge, he said.