UK Tax Authority Issues Guidance on AI Use in Tax Software

Software using generative AI to help customers with taxes should ensure strong human oversight and use reliable data sources, the UK tax authority said in guidance issued Wednesday.

Software should “clearly flag” to taxpayers any areas involving nuanced tax rules or complex scenarios and indicate when professional advice may be needed, according to guidance from His Majesty’s Revenue and Customs for software developers on “good use” of AI.

Generative AI-enhanced software “should support, not replace, human judgment,” HMRC said. “Where needed, it should actively prompt users to check the results themselves and allow them to correct any errors or raise ...