In a groundbreaking partnership, Microsoft and H&R Block have joined forces to introduce generative artificial intelligence (AI) to streamline the do-it-yourself tax filing process for taxpayers.
H&R Block unveiled its AI Tax Assist product, developed in collaboration with Microsoft through its Azure OpenAI Service, in December ahead of the tax season kickoff. Leveraging data from The Tax Institute at H&R Block and insights from over 60,000 tax professionals, AI Tax Assist aims to empower DIY customers—including individuals, self-employed individuals, and small business owners—in preparing their tax returns.
This innovative tool provides users with crucial information regarding tax forms, deductions, and credits, optimizing refunds and minimizing tax liabilities. Moreover, it guides users through a series of questions during the preparation and filing process, offering clarification on tax terms and rules, and updating users on changes in tax code and policies.
Aditya Thadani, vice president of AI platforms at H&R Block, emphasized the meticulous collaboration with Microsoft engineers to ensure the integrity and reliability of the platform. Thadani highlighted the incorporation of the latest models from Azure OpenAI, coupled with robust controls, to uphold the standards expected by clients.
Microsoft’s Eric Boyd, corporate vice president of Azure AI Platform, underscored H&R Block's status as the exclusive partner in the tax industry for Microsoft's AI 100 initiative. This initiative focuses on collaborating with industry leaders to develop and deploy solutions utilizing Azure OpenAI services, bridging the gap between technology and various sectors.
Boyd elaborated on the significance of partnerships like the one with H&R Block, emphasizing the transformative potential of AI technology in simplifying complex tasks such as tax filing. Through Copilots for developers and knowledge workers within Microsoft 365, Boyd highlighted the role of AI assistants in providing personalized guidance and assistance, particularly in navigating intricate processes like tax preparation.
Thadani elaborated on the expertise brought to fruition in AI Tax Assist, harnessing the extensive knowledge of H&R Block's Tax Institute and making it accessible to DIY tax filers. By leveraging this wealth of expertise and content, users can engage with the platform using everyday language, without requiring specialized knowledge.
Microsoft's Azure OpenAI Service ensures the privacy and security of users' data, with Boyd highlighting Microsoft's adherence to stringent data management practices. Thadani emphasized the strict separation between the AI Tax Assist tool and the actual tax preparation software, ensuring transparency and informed consent regarding the use of client data.
Through this innovative collaboration, Microsoft and H&R Block are revolutionizing the tax filing experience, merging cutting-edge AI technology with industry expertise to empower taxpayers in navigating the complexities of tax preparation with confidence and ease.
