Tax offices are already using the OpenAI software extensively for their work.
(Photo: dpa)
Cologne If you study the websites of tax offices these days, you will sometimes find a very new source under current texts. “Created with the help of Chat GPT” is written, for example, under simple judgment notes or communications from advisors to their clients.
The latest version GPT-4 of the artificial intelligence (AI) chat GPT from the company OpenAI has been available since mid-March. A growing number of law firms use the largely automated text creation – or prepare for it. “Our online seminar for the introduction to working with Chat GPT is in extremely high demand,” says Frederic Schürmann, Managing Director of the IFU Institute for Management in Bonn, which offers further training for tax consultants, among other things.
Many tax consultants have laid the technical basis for the use of AI in recent years. “Our profession has come a long way when it comes to digitization,” says Gero Hagemeister, President of the Cologne Association of Tax Advisors and Vice President of the German Association of Tax Advisors.
A survey for the study “Germany’s best tax consultants 2023” by SWI Finance confirms the assessment. After that, the use of IT has progressed further. According to the survey, 74.2 percent of law firms are now largely paperless and 76.5 percent have set up digital interfaces for communicating with clients.
A survey by the IT service provider Datev of almost 700 law firms shows how well the majority of tax consultants have their digital processes under control. After that, more than half of them managed to successfully complete digitization projects. Only 26 percent report significant delays in such projects.
Using AI can save a lot of time
The introduction of artificial intelligence is not a major hurdle, because the first steps are relatively easy. As an example, IFU Managing Director Schürmann cites a text entitled “What innovations in tax law can clients expect at the turn of the year?” This is written by an AI application “already largely independently”. It only needs a technical final check.
In principle, it is possible to save about half the usual time for such a task with AI. In addition, intelligent software can relieve the employees of law firms with research – for example by collating all judgments on the valuation of real estate.
AI could also provide support as a chat tool – for example, when clients call to request an appointment for an advance payment and the amount. Such a program can respond to this if it has access to the appropriate database. “AI only develops its full effect when it is integrated into the law firm’s IT systems such as databases, Office or e-mail programs,” says Schürmann.
But this is exactly where legal problems can arise. Because chat GPT provider OpenAI reserves the right to save and use information entered. “I therefore advise against entering sensitive data,” says Schürmann.
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Competition in AI programs is picking up pace. Microsoft has entered into a close partnership with OpenAI. In addition, Salesforce, Meta and Google are launching alternatives to ChatGPT. Experts expect that by 2025, AI systems in law firms will largely take over repetitive work such as filling out forms.
AI could have disruptive consequences for the industry
The prerequisite, however, is that the new tools are maintained accordingly after their introduction and that employees develop the necessary know-how. Those responsible for AI must therefore not only be technically versed, but also prove to be a multiplier in the team so that the workforce accepts the innovation.
AI could have transformative consequences for the industry. “Now it’s still a goodie for law firms, but those who consistently use AI will possibly oust other law firms,” says Schürmann. But he also sees fields of work that will continue to remain firmly in the hands of man. For the time being, AI will not penetrate the individual advice provided to clients.
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