In the past, technology mainly replaced manual or repetitive tasks, while professions relying on creative, synthetic thinking, such as lawyers, tax advisors, and journalists, remained exclusively human. Today, however, the rapid advancement of technology is disrupting professions reliant on human knowledge.
The widespread adoption of generative AI since the launch of ChatGPT in November 2022 has made it clear that the future of office professions, particularly in law, is at a turning point toward radical transformation. Goldman Sachs estimates the technology could automate up to 44% of legal tasks, significantly higher than any other profession. GPT-4 has successfully passed the US Bar Exam, solving legal issues with impressive accuracy. Predictions suggest that within a year, AI’s capabilities will resemble those of a paralegal and within five years, those of an average lawyer. If such predictions hold, legal professionals and their employers must carefully plan their next steps and make bold organizational decisions.
In the tax services sector, AI’s entrance is reshaping how tasks are approached. Algorithms can sift through data, and spot trends and errors that help refine tax filing and adherence to regulations. These tools could predict tax obligations, laying the groundwork for strategic tax planning that was previously hard to imagine. They could assist in navigating the tax code in real time, which is essential for tax professionals aiming to keep their advice current amid rapidly changing tax laws. The role of tax advisors is evolving, with AI potentially taking on the heavy lifting in data analysis and compliance monitoring, pushing professionals toward more strategic and advisory capacities.
The two main areas affected in legal services are document analysis and drafting, including contracts, opinions, and internal policies. This technology will soon function as a personal assistant with specialized legal knowledge, undertaking tasks such as contract drafting, legal research, negotiating contract terms, legal risk assessment, probability of win estimation, and summarizing legislation or contracts.
Further, AI is revolutionizing tax services by facilitating the automation of complex tasks; this includes the drafting of advisory memos, accurate tax compliance calculations, and refined tax liability estimates. It also provides essential support in real-time legislative monitoring, ensuring tax professionals can offer up-to-date advice. Embracing AI requires tax professionals to develop a blend of technological proficiency and insight into AI’s operational capabilities, enabling them to utilize AI effectively in their workflow. Of course, like any assistant, this technology must always be supervised by an experienced lawyer or tax advisor, as it is not yet 100% accurate.
As we move towards an era where AI can handle significant tax and legal work, professionals face both opportunities and challenges. This technology is both revolutionizing the profession and raising questions about its future. Lawyers and tax advisors must adapt, train, and responsibly integrate new tools, ensuring the quality and immediacy of services provided to society.
