A new report from Tolley®, part of LexisNexis® Legal & Professional, reveals that AI adoption among tax professionals has surged to 64%, up from 40% in February 2025. The study, titled “The AI Pricing Shift in Tax,” captures a profession in transition—from cautious experimentation to structural reinvention.
Only 8% of respondents now say they have no plans to adopt AI, signaling that the once-conservative tax sector has officially joined the AI arms race.
The AI Effect: Faster Work, Happier Clients, New Economics
According to the report, 80% of AI users say the technology’s biggest advantage is speed, followed by improved client service (70%) and competitive edge (55%).
But while enthusiasm is high, maturity remains low. Just 15% of professionals say AI is fully embedded in their firm’s strategy or operations—most describe current use as “experimental” or “underfunded.”
That gap between potential and practice is where the industry’s next big transformation may lie. As automation accelerates routine work, firms are being forced to confront a harder question: how to price human expertise in an AI-driven world.
The End of the Billable Hour?
The report finds that traditional hourly billing—long the financial backbone of professional services—is beginning to crack.
41% of firms are already testing fixed-fee models, 38% are trying flat fees, and 20% are experimenting with phased pricing. Even more revealing, 26% are considering subscription-based services, while 20% are exploring bundled pricing that pairs AI-generated insights with expert review.
In other words, clients are starting to expect the same thing from tax advice that they get from software: speed, predictability, and transparent value.
“AI is fundamentally changing the economics of tax,” said Jonathan Scriven, Director of Tax Markets at LexisNexis. “Faster workflows and smarter insights are challenging the billable hour and creating pressure for value-led pricing.”
Scriven argues that firms adapting quickly will “attract top talent and strengthen trust in their services”—a hint that pricing strategy and employer brand may soon be two sides of the same coin.
The Talent Equation: AI as a Retention Strategy
Beyond pricing, the Tolley report surfaces another looming challenge: talent risk.
Roughly one in five tax professionals—including 20% in private practice and 23% in-house—say they would consider leaving their organization if it fails to adopt AI adequately.
That’s a warning shot for leaders still viewing AI as optional. In an industry defined by billable efficiency, automation isn’t just a productivity tool—it’s becoming a cultural and retention imperative.
Firms that hesitate risk not just falling behind in efficiency but losing their most ambitious talent to competitors embracing next-gen workflows.
What It Means for HR and Operations Leaders
The implications stretch far beyond the tax department. The shift documented by Tolley mirrors a wider professional services trend—AI compressing the time needed for knowledge work and forcing a rethink of how value is priced, delivered, and rewarded.
For HR and transformation leaders, the takeaway is clear: AI isn’t replacing expertise—it’s redefining its market value. The firms that get ahead will be those that pair automation with agile pricing, reimagined incentives, and strong change management around AI literacy.
In short, the race is no longer about who can do the work faster, but who can price intelligence smarter.
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