Artificial intelligence is making it easier for people to understand and file their taxes—but it’s also increasing the risk of costly mistakes and highly convincing fraud.

Research and classroom insights from Caroline Bruckner, a professor of accounting and director of the Kogod Tax Policy Center at the Kogod School of Business, show that AI is simultaneously improving tax literacy and weakening safeguards that traditionally protected taxpayers.

This tension—a system that is more accessible but more vulnerable—is reshaping how individuals file taxes, how scams operate, and how accountants are trained.

What Is the Core Impact of AI on Tax Access and Understanding?

The central finding in Bruckner’s work is straightforward: AI lowers the barrier to entry for tax engagement, but it does not guarantee correct outcomes.

Tools powered by AI now allow taxpayers to:

• Ask detailed tax questions in plain language
• Receive instant explanations of complex rules
• Complete parts of the filing process without formal expertise

In a system where confusion is common, accessibility is meaningful. Many taxpayers historically lack even basic clarity around what they owe or why.

AI is beginning to fill that gap—but it does so unevenly.

What Risks Does AI Introduce in Tax Preparation?

Bruckner’s research highlights a critical limitation: AI can produce answers, but it cannot reliably account for nuance.

That creates three key risks:

• Oversimplification: Complex tax scenarios reduced to incomplete guidance
• False confidence: Users trust outputs that sound authoritative
• Missed context: Individual financial details that AI cannot fully interpret

These risks are especially pronounced for:

• Small business owners
• Freelancers
• Taxpayers with multiple income streams

In these cases, small errors can lead to significant financial consequences.

How Is AI Changing Tax Scams?

One of the most immediate real-world implications of this research is the evolution of tax fraud.

AI has dramatically lowered the cost and effort required to produce high-quality scams. Fraudsters can now generate:

• Emails that closely replicate IRS communications
• Voice messages that sound urgent and legitimate
• Personalized outreach tailored to individual taxpayers

The result is not just more scams—but more believable ones.

Even experienced professionals can struggle to distinguish fraudulent messages from legitimate outreach, which marks a significant shift in risk.

Can AI Improve Tax Literacy?

Despite these concerns, Bruckner’s work also points to a meaningful opportunity: AI could help solve one of the most persistent problems in the US tax system—low tax literacy.

Many taxpayers approach filing with uncertainty or avoidance. AI tools are beginning to change that by:

• Making information available on demand
• Explaining the reasoning behind tax rules
• Reducing intimidation around the filing process

Over time, this could lead to more informed and engaged taxpayers.

Will AI Replace Accountants or Change Their Role?

A key implication of this research is that AI is not replacing accountants—it is changing what expertise looks like.

The distinction is critical:

• AI can generate responses
• Accountants are responsible for validating them

That responsibility becomes more important—not less—in an AI-driven system, particularly in:

• Tax compliance
• Advisory services
• Risk assessment

As AI increases both access and error potential, the need for professional judgment grows.

How Are Accounting Programs Adapting to AI?

At Kogod, these insights are directly shaping how accounting students are trained.

Instead of focusing primarily on technical execution, coursework now emphasizes:

• Critical evaluation of AI-generated outputs
• Clear, client-ready communication
• Iterative feedback and revision
• Professional judgment in ambiguous scenarios

Students still learn the fundamentals—but they also learn how to question, interpret, and validate information in an AI-assisted workflow.

That shift reflects the reality graduates will face in the field.

Why Does This Research Matter for Taxpayers and Businesses Right Now?

Taxes sit at the intersection of policy, technology, and everyday decision-making. As AI becomes embedded in financial systems, its influence extends beyond efficiency—it changes behavior, risk, and trust.

Bruckner’s research makes one point clear: AI is not simplifying taxes. It is transforming them.

For taxpayers, that means greater access—but also greater responsibility.
For businesses, it means new efficiencies paired with new risks.
For future accountants, it means a career defined not by automation—but by judgment.

And that is exactly the kind of problem Kogod prepares students to solve.