Core Insights - Generative AI chatbots, such as ChatGPT, are increasingly being utilized for various tasks, including tax preparation, despite potential drawbacks [1][3] Group 1: Adoption of AI for Tax Preparation - A significant portion of the American population, over 43%, would trust AI for tax filing rather than hiring a professional, with Gen Z showing the highest trust at 49% [3] - Older generations also exhibit willingness to trust AI, with 25% of Baby Boomers and 18% of The Silent Generation expressing confidence in AI for tax-related tasks [3] Group 2: Advantages of Using AI - AI can assist in tax preparation by generating lists of required documents and forms, especially for individuals with multiple income streams [4] - It can help identify common deductions or tax credits, aiding users in deciding between itemized deductions and the standard deduction [5] - AI may flag inconsistencies or missing information, prompting further investigation by the user [5] Group 3: Limitations and Risks of Using AI - The information provided by AI may not be current or accurate, potentially missing newly announced credits, which could lead to inaccuracies if users rely solely on AI without verification [6] - AI lacks personalized understanding of individual financial situations, such as debt-to-income ratios or specific tax brackets, which may result in outdated or irrelevant guidance [7]