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The role of artificial intelligence has grown exponentially during the last decade and now it seems to have finally reached the tax industry.

The latest company to join the artificial intelligence frenzy is US tax preparation company H&R Block who has partnered with IBM’s Watson robot to help its clients better complete and return their annual tax forms.

According to the agreement signed earlier this week, the company’s artificial intelligence technology is expected to help in 2017 approximately 70 thousand tax professionals located in more than 10 thousand H&R Block centers better serve their customers.

More specifically, following a trial period that was held during January, IBM’s robots will start assisting close to 11 million clients spread throughout the USA as of February 6th.

“We are introducing something this tax season that is totally new, and is in fact, a first in the tax preparation category,” said Bill Cobb, H&R Block's CEO. “By combining the human expertise, knowledge and judgment of our tax professionals with the cutting-edge cognitive computing power of Watson, we are creating a future where our clients will benefit from an enhanced experience and our tax pros will have the latest technology to help them ensure every deduction and credit is found. This partnership with Watson means we can leverage the best technology available to help our clients get their taxes won.”

David Kenny, senior Vice President for IBM Watson and Cloud Platform agreed, saying, “IBM has shown how complex, data-rich industries such as healthcare, retail and education are being transformed through the use of Watson. Now with H&R Block, we're applying the power of cognitive computing in an entirely new way that everyone can relate to and benefit from – the tax prep process.”

“We're excited to see H&R Block's tax professionals, leaders in their field, join their expertise with Watson to enhance the client experience and help millions of individuals file their returns during tax season,” Kennedy added. 

As explained by John Fingas for Engadget, this is how Watson will help customers out: “After you participate in an initial interview, the artificial intelligence will offer suggestions to Tax Pros (read: experts) looking for deductions, and illustrate the bigger picture for you on a dedicated client screen. Ideally, Watson's ability to understand context and intent will turn your statements into tangible data that leads to bigger tax breaks.”

According to Fortune, “the Watson system is analogous to Apple’s…Siri digital assistant that people use to ask basic questions, except it’s been specifically trained to answer questions involving taxes and related information, using an AI technique called deep learning.”

Here’s an H&R Block ad with a breakdown on how Watson will help its customers:

More precisely, as reported by Fast Company, both IBM and H&R Block have said, “Watson has digested 600 million "data points" from past filings to learn tips and tricks.”

This input of information will allow H&R Block to better tailor their services to its customers.

For instance, said Cobb, “If you're a journalist in California, married, filing jointly, [Watson is] going to know what other journalists in California, filing jointly or not, have been able to find as deductions or credits.”

“Just getting it done means you're leaving money on the table,” Cobb told the Detroit Free Press over the phone. “There is no doubt that an assisted return experience is better than doing it yourself.”

“We want to have people re-think the tax experience,” Cobb said. “It's their tax year, their tax life."

Overall, while this move might seem very promising, both companies are taking a big risk, particularly IBM.

As reported in Fortune, “if its technology fails during peak tax season in April, generates bad answers, or complicates the tax process beyond its current inconvenience, the company will take a big PR hit.”

H&R Block will officially launch the product with its first Super Bowl ad in eight years, which stars Mad Men’s star Jon Hamm.

This is the latest task to be tackled by IBM’s Watson, which has already been used by companies like GEICO, Staples and Macy’s to handle customer questions and help shoppers better navigate stores.

What are your thoughts on the role of artificial intelligence in the world of tax?