Blue J, a generative AI solution for tax research, and CPA.com, the business and technology subsidiary of the AICPA, have released the AI Tax Research Solution Outlook Report, a comprehensive analysis of the current tax research landscape and the rapid adoption of AI-powered solutions.
Drawing on responses from more than 150 tax practitioners across firm sizes, the report uncovers a widening performance gap between those adopting AI-powered tax research solutions and those still using legacy tools.
Key insights from the report include:
- AI adoption has surged – 54.4% of practitioners already use AI for tax research, even though just 33.1% of firms have formally adopted AI tools. Many are turning to AI without a firm-sanctioned solution in place because their firms haven’t kept up.
- Legacy systems are failing fast – 81.3% of practitioners still turn to Google for tax research despite firms paying for costly tax platforms. Top complaints: too time-consuming (42%), too expensive (42%), and too difficult to navigate (37%).
- AI tools are proving their worth – Blue J’s AI solution alone has answered more than 2 million tax questions by July 2025, a +735% year-over-year increase. Users report saving an average of 2.94 hours per week, with authoritative answers generated in as little as 2.8 minutes.
“This report should serve as a wake-up call,” said Benjamin Alarie, CEO and co-founder of Blue J. “Tax practitioners know AI is the future—they’re already using it to move faster and deliver more value. But many firms are dragging their feet. The result is a widening performance gap between those who empower their teams with AI and those who risk being left behind.”
The findings make clear that firms can no longer afford to ignore the accelerating shift toward AI. Despite heavy investments in legacy tax research systems, practitioners continue to continue to bypass them for both search engines and general purpose AI tools, putting firms at risk of delivering inaccurate and unverifiable tax answers to clients.
While concerns remain around security, cost, and response quality of tax-specific AI-powered research solutions, the report notes that these are increasingly outweighed by the clear value AI provides. With a demographic shift underway in the tax workforce, firms are also beginning to rely on AI to close staffing gaps and streamline research.
The AI Tax Research Solution Outlook Report is available now, offering actionable insights on adoption trends, barriers, and best practices for firms at every stage of the AI journey.
The report is available at https://www.cpa.com/whitepapers/ai-tax-research-solution-outlook-report.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
