Robotics and the Future of Tax Preparation Services

Overview: Robotics and automation are poised to revolutionize the tax preparation services industry. By automating time-consuming tasks, reducing errors, and increasing efficiency, robotic process automation (RPA) can significantly alter the tax preparation landscape. This shift isn't just on the horizon — it's happening now.

The Current State of Tax Preparation Services:

Currently, the tax preparation services industry represents a significant economic sector. With over $11 billion in revenue and more than 300,000 direct employees in the US alone, its transformation through robotic automation will have noteworthy consequences. The opportunity is ripe for changes, especially considering that approximately 90% of businesses still use manual processes for tax preparation tasks.

Emergence of Robotic Process Automation (RPA):

According to Deloitte, as much as 50% of the current workload in tax preparation could be automated using existing technology. The application of Robotic Process Automation (RPA) in this industry signifies a significant disruptive potential. An RPA software can manipulate existing application software in the same way a human would, allowing it to carry out rule-based tasks. Notably, bots have the capacity to learn from previous processes and improve performance over time.

Impact on Employment in the Tax Prep Industry:

McKinsey reports that while jobs involving predictable, routine tasks are likely to be automated, positions requiring complex decision-making and human interaction will likely still need a human touch. Indeed, a survey revealed that a staggering 39% of tax professionals anticipate spending more time on strategic planning and advisory work as automation takes over the more mundane, routine tasks in the coming years.

Future Prospects and Projections:

Two-thirds of tax executives from a survey by Ernst & Young expect to be using robotics in tax operations extensively within two years. Simultaneously, Gartner predicts that by 2025, 50% of government agencies will have invested in RPA bots for commercial functions and revenue streams, including tax preparations.

Key Takeaways:

• The tax preparation industry is ripe for transformation, as 90% of businesses still rely on manual processes.

• Robotic Process Automation (RPA) signals a significant disruptive potential, with Deloitte positing that up to 50% of tax preparation tasks could be automated using existing technologies.

• McKinsey indicates that while routine tasks will be digitized, human input will still be necessary for complex tasks; 39% of tax professionals expect to increasingly focus on strategic advisory work.

• Experts project rapid adoption rates for RPA in the field, with two-thirds of tax executives expecting to use robotics extensively within two years and 50% of government agencies anticipated to invest in RPA by 2025 for revenue streams like tax preparations.

3Laws Robotics is well positioned to support these key uses of robotics in tax preparation services. At 3Laws, we are focused on developing innovative software solutions to enhance the safety, reliability and efficiency of robotic systems.

Our flagship software, 3Laws Supervisor, is aimed at simplifying the certification process by offering robust safety features, providing evidence of system robustness, resulting in an easier certification path.

Built on Control Barrier Functions (CBFs), a technology developed at Caltech, 3Laws Supervisor provides mathematically provable safety. This not only enhances the reliability of robots but also ensures their safe operation in any environment.

From warehouse automation and human-robot interaction, to robotics in dynamic environments, 3Laws helps businesses across different sectors achieve more with robotics.

With 3Laws' solutions, robots can also reduce downtime by preventing unnecessary e-stops or collisions, further enhancing operational efficiency.

We are here to provide real-time guardrails for your robotic systems, allowing them to operate closer to their peak capabilities while maintaining safety. Position your business for the future with 3Laws Robotics — the next-generation safety solution that offers a proactive approach to robotic safety.