Artificial Intelligence (AI) is revolutionizing the way machine shops claim their Research and Development (R&D) tax credits. By harnessing the power of AI, machine shops can now streamline their R&D tax credit claims process, improving efficiency and accuracy while reducing the time and resources traditionally spent on these tasks. The future of R&D Tax credits is with Legal Language Models (LLMs) and AI.
Harnessing AI to Improve Efficiency and Precision
AI brings two main advantages to the R&D tax credit claims process. First, AI reduces the time required to prepare a claim by automating many of the tasks that used to require manual input. Second, AI increases the precision of the claim by better identifying eligible activities and calculating credits. This is done using sector-specific trained LLMs, which are trained to identify activities that meet the 4-part test, describe technological uncertainties faced, and highlight technological advancements gained.
Writing Detailed Technical Reports with AI
A highly trained sector-specific LLM can also assist in writing detailed technical reports. It can accurately represent work done by the company’s employees, identifying and describing a scientific method approach. LLMs can be used to track qualified research activities aimed at resolving technical uncertainties based on employee and contractor analytical and experimental activities.
“Automation is cost-cutting by tightening the corners and not cutting them.” —Haresh Sippy
Managing Qualified Research Expenses
Beyond identifying eligible activities and preparing technical reports, LLMs can also track qualified research expenses, reducing the time load by employees having to manually track their project progress. This includes managing a claimant’s time surveys and employee activities, contractor activities, and supplies used during the experimental trials. A trained LLM can manage a claimant’s timeline by regularly engaging with clients by emails and voice AI, answering questions specific to their process.
Integrating with Existing Systems
A trained LLM also has the ability to connect to existing project management, ERP, and accounting systems, automatically capturing eligible activities in real time for larger and more complex claims. This is another way in which AI is replacing traditional consulting and higher cost methods. In conclusion, AI is transforming the way machine shops prepare and support their R&D Tax Credit claims. By automating traditionally manual tasks and increasing the precision of the claim, AI is making the claim process more efficient and less resource-intensive. For machine shops looking to maximize their R&D Tax Credits, the future is with LLMs and AI.
Get Your R&D Tax Credit Estimate
To find out how much your R&D Tax Credit can be, click the button below to get an estimate. Harness the power of AI and maximize your R&D tax credits today.