Blue J, an AI-powered tax research solution, and CPA.com, the trusted partner in accounting and finance transformation, has released the second annual AI Tax Research Solution Outlook Report, examining how AI-powered tax research adoption is reshaping accounting firms and changing how practitioners work.
Based on a survey of more than 1,000 tax professionals across the United States, practitioners are no longer experimenting with AI — they’re increasingly relying on it as a core part of their workflows and broader firm transformation strategies.
Key findings from the report include:
- AI-powered tax research adoption has nearly doubled over the past year. 60% of respondents now use AI for tax research at least weekly, up from 33% in 2025. At the same time, the percentage of firms considering adopting AI in the near future has risen to 32%.
- AI is now embedded across different workflows. Respondents are using AI across a wide range of applications. Advisory projects (44%) and tax planning (40%) lead the list, with compliance research (39%), document analysis (36%), and drafting (35%) close behind.
- AI is changing practitioners’ relationships with time and people. 84% of respondents agree AI saves time, and many are focusing on reinvesting that time towards people: 50% toward improving client response and delivery timelines, 47% toward staff work-life balance and 46% toward delivering higher-quality advice.
- AI is changing how practitioners bill. As AI commodifies routine tax knowledge, 69% of respondents anticipate moving to a value-based, hybrid, or fixed-fee billing model.
“A year ago, we were talking about how AI-powered tax research adoption was rising. Now we’re past the tipping point,” said Benjamin Alarie, CEO and co-founder of Blue J. “What we’re seeing now is AI humanizing the profession by giving practitioners the time and headspace to exercise their judgment, engage more deeply with clients, and step into the role of trusted advisors.”
At the heart of these findings is the human shift. As AI takes on more of the routine work of tax research, practitioners are gaining time to focus on the uniquely human contributions AI can’t replace which includes judgment, relationships, and the kind of personalized advice that turns a one-time transaction into lasting client partnership.
“We’re seeing a change in what clients are looking for,” said Matt Brewer, Tax Partner & National Tax Software and Automation Leader, at Sorren. “They’re looking a lot more for that trusted advisor, that relationship. With the old processes, people are so bogged down in compliance that it’s really hard to find the time to address that need. AI is freeing up our staff to move up quicker — and ultimately elevate them to become that client-facing relationship builder and build that trust with the client.”
“AI-powered tax research is quickly becoming foundational to the modern tax workflow,” said Brandon Allfrey, Senior Director, Tax Transformation at CPA.com. “As firms advance their tax transformation strategies, AI is helping practitioners deliver more proactive, higher-value advisory services. Working alongside innovators like Blue J, we’re seeing firms reimagine how tax work gets done — creating new opportunities for growth, talent development and stronger client relationships.”
CPA.com continues to support firms navigating broader tax transformation efforts through its tax advisory services initiatives, including ongoing research, benchmarking and thought leadership focused on workflow modernization, technology adoption and advisory evolution. Firms interested in benchmarking their own tax transformation strategies and technology adoption can participate in CPA.com’s Tax Transformation Benchmark Survey.
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