Small Business Tax Data Protection in the Artificial Intelligence Era — A WISP Away

Generative AI, large language models (LLMs), advanced image recognition, AI agents, Chatbot GPT, DeepSeek and . . .TaxBot GPT? These are Artificial Intelligence (AI) technologies that are available to the public, including tax firms that prepare tax returns with sensitive business and client data. Businesses, especially small businesses, should choose their tax practitioners carefully as AI-based tax services become more common-placed. AI has the potential to greatly improve the availability, costs, and quality of tax services for small businesses (Federico & Thompson, 2023; Hussin, Bukhari, Hashim, Bahari, & Mohd, 2024). However, are there are potential privacy and data risks associated with tax firms or their staff using AI technologies? This paper highlights important points that small business might consider when selecting a tax firm that uses AI technologies.