AI offers opportunities in tax credit, incentive management

Artificial intelligence is no longer a distant trend. It's transforming the accounting profession today. 

While much attention has been paid to automation in audit, bookkeeping and reporting, one of the most immediate and overlooked opportunities lies in tax credits and incentives. 

Historically manual, time-consuming and underutilized by clients and accounting firms alike, C&I work is now being streamlined through sophisticated AI technology companies, opening the door to a significant new revenue stream for accounting firms.

At a time when CPA shortages are putting pressure on capacity and tax complexity continues to increase, firms need ways to do more with less. Automating the discovery, documentation and compliance processes around C&I doesn't just improve efficiency, it empowers accountants to deliver high-impact value to clients who are actively seeking financial relief. 

Many businesses are unaware of the credits they qualify for, and they're looking to their accountants for answers. By proactively identifying and securing these opportunities, firms can strengthen client relationships, reinforce their advisory role, and drive profitable growth.

In an environment where competition is fierce and margins are tight, turning C&I into a strategic capability isn't just smart — it's essential.

C&I as a focus of tax strategy

Despite representing billions in annual value, C&I programs remain an underleveraged asset in corporate tax strategy. At the federal, state and local levels, over 3,000 credit and incentive programs are active in the U.S. alone, according to the Council on State Taxation. These programs reward businesses for investing in job creation, clean energy, R&D, expansion and more.

Yet, the discovery and claiming of these incentives is often fragmented, managed in spreadsheets, decentralized email chains or entirely siloed within government affairs or operations teams. Many companies simply outsource, at huge expense, to advisory firms. This disconnect leads to billions in missed opportunities each year. According to IRS data and industry estimates, only a fraction of eligible incentives are claimed, leaving 20% to 30% of potential savings untapped.

Tax professionals know the value is there, but the manual effort required to identify, qualify and claim these credits has made them cost-prohibitive at scale. This is precisely where new AI-based models and firms enter.

Turning C&I into scalable value for accountants

AI and machine learning are radically improving the way tax teams surface and evaluate C&I opportunities. Instead of sifting through thousands of jurisdictional programs, modern platforms ingest location data, employment patterns and capital investments to instantly match companies with eligible credits, some of which are time-sensitive, retroactive or require real-time compliance tracking.

Automation isn't just about speed; it's about precision and scalability. A single accountant or internal tax team can now scan hundreds of incentive programs across dozens of jurisdictions in seconds, not weeks. As a result, firms can shift their focus from data gathering and form-filling to strategic planning, cross-functional advisory and client education.

This efficiency is already driving measurable outcomes. According to Deloitte's 2023 Global Tax Transformation Trends report, 65% of tax leaders rank automation as their top priority to manage complexity and elevate the role of tax within the business. In the context of C&I, automation enables firms to scale their reach across jurisdictions, reduce administrative burden and redirect tax professionals toward higher-value strategic work — transforming what was once a labor-intensive function into a growth driver for both firms and their clients.

Bringing accounting into the automation era

Many firms have already embraced AI in audit and compliance. Tools that flag anomalies, track filing deadlines or automate document workflows are becoming standard. But accountants performing advisory services remain a largely manual endeavor (if performed at all). This creates a mismatch between the speed of compliance and the pace of strategic value delivery.

Few areas in tax advisory can deliver both immediate cost savings and long-term client value like C&I. AI brings automation to eligibility mapping, compliance tracking and alerts, turning what was once a low-margin, high-effort offering into a high-yield, scalable revenue stream for firms and clients alike.

The industry's shift is already underway. In June 2024, RSM US LLP announced a $1 billion investment in AI and automation technologies over five years, aiming to modernize its advisory and compliance offerings. The firm's commitment to AI agents and cloud-based services reflects a broader acknowledgment that routine tax tasks must be automated, not only to improve efficiency but to enable professionals to focus on higher-value, strategic work amid an industry-wide talent shortage.

The future of accountants and tax advisory services

As the profession navigates shrinking headcount, intensifying regulatory demands and clients hungry for real financial impact, it's time to reimagine the role of accountants, especially in the realm of tax advisory. Automating the discovery and management of C&I offers more than just efficiency gains; it unlocks a scalable advisory revenue stream that's both timely and in high demand.

For firms looking to differentiate and grow, C&I automation is a strategic advantage. It allows accountants to move beyond reactive compliance work and into the role of proactive financial advisor, delivering tangible ROI to clients while driving firm profitability. The message is clear: If you're not building a modern, AI-enabled C&I strategy, you're leaving value on the table, for both your firm and your clients.