April, an AI-powered tax software startup, is launching a fully-automated electronic filing software in the hopes of making tax season simpler for both individuals and businesses.
Unlike competitors such as TurboTax (INTU) and TaxAct, April doesn’t just provide a single software solution. It also partners with banks and major financial companies like Acorns to integrate its AI tech and improve the tax filing experience for their users.
As of last month, April works with 12 institutions, as well as thousands of individual taxpayers.
April launched a limited product last year. It has since continued to train its artificial intelligence engine using multiple open language models, such as OpenAI’s. In doing so, April’s tech is now able to use generative AI to turn the tax law into software code.
This functionality is unique to April. Turning tax law into code was previously done “purely” manually, according to the company’s CEO Ben Borodach. Plus, with its AI-powered backbone, the software should remain up-to-date with each change or addition to the tax code.
Tax season can be an anxiety-inducing time. The US tax code is complex, and even unwitting mistakes run the risk of triggering an audit. If it achieves its goal of making tax filing simpler, April’s software could provide a breath of fresh air for many Americans.
Tax code complexities sit in an AI sweet spot, potentially making them well-suited for April’s tech to solve. Typically, artificial intelligence excels at two things: simplifying tedious tasks and personalizing solutions. Both of these skills are relevant when it comes to filing taxes.
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