Wide Use of Generative AI Prompts Pricing Concerns for Companies

The increasing use of artificial intelligence in the production of goods, services, and intellectual property is creating a need for clearer standards on how those functions should be valued for tax purposes.

Practitioners said that as AI becomes more integral in everyday business, the criteria to accurately value transactions between related companies will change.

Companies are currently relying on traditional methods of transfer pricing to value sales of AI-generated content.

“We don’t need ‘new’ methods to value AI contributions,” said Thomas Herr, a principal and national leader for KPMG’s transfer pricing services. “AI isn’t changing how competitive markets function.”