PHILADELPHIA, PA — A new survey from Qlik found that while more Americans are using artificial intelligence tools to assist with tax preparation, 40% say they would never enter personal or financial information into such systems due to privacy concerns.
The survey, conducted in late February among 2,001 U.S. respondents, found that 11% of Americans required to file taxes this year said they used or plan to use AI tools for tax-related help.
Younger adults ages 18 to 24 reported the highest level of experimentation, with usage rising from 17% last year to 23% this year, while adoption among those 55 and older remained low at 2%.
However, adults ages 35 to 44 showed the highest willingness to share sensitive financial data with AI tools, including income details (36%), employer information (31%), and Social Security numbers (26%).
“What’s striking is not that Gen Z is experimenting, it’s that mid-career adults are the ones most willing to share sensitive tax data with AI,” said Mike Capone, chief executive officer of Qlik.
Capone said broader adoption will depend on whether users trust how their data is handled, particularly in high-stakes situations such as tax filing.
The survey found that tax software remains the primary method for filing, used by 44% of respondents overall and 50% of adults ages 35 to 44.
Respondents said AI tools are most commonly used to identify deductions or credits (26%), review returns for errors (25%), answer tax-related questions (25%), and assist with completing sections of returns (23%).
Despite growing use, one in four respondents said they do not believe AI is useful for tax preparation.
Privacy concerns were cited as the leading barrier to adoption, with 48% of respondents pointing to risks such as data exposure or misuse, compared with 16% who cited concerns about accuracy or how AI generates responses.
The survey also found a gender gap, with 14% of men reporting they used or plan to use AI for tax help compared with 7% of women.
Half of female respondents said they would never input personal or financial data into AI tools, compared with 29% of men.
Qlik said the findings suggest AI is being used alongside traditional tax software and professional services rather than replacing them, with adoption shaped by trust, transparency, and data security concerns.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.