Smart R&D Claims: How AI Empowers Machine Shops with Tax Credits

Smart R&D Claims: How AI Empowers Machine Shops with Tax Credits

The Emergence of AI in R&D Tax Credit Claims

Artificial Intelligence (AI) has permeated many sectors of the economy, and the realm of R&D Tax Credit claims is no exception. Machine shops, for instance, are increasingly leveraging AI to automate and facilitate claiming R&D Tax Credits, replacing traditional manual methods of preparing and backing claims. The result is less time spent on the process and higher precision in the claims submitted, all while increasing support documentation.

The Role of Sector Specific LLMs

The secret behind this efficiency is a highly trained sector-specific Legal Language Model (LLM). These AI-powered models are trained to identify eligible activities that meet the four-part test, describe technical uncertainties faced, and highlight the technological advancements gained. They have a keen understanding of the unique activities that characterize machine shops, enabling them to accurately represent the work done by a company’s employees.

Beyond Technical Reports

LLMs do more than just writing detailed technical reports. They track qualified research activities aimed at resolving technical uncertainties. These activities are based on employee and contractor analytical and experimental tasks. This tracking significantly reduces time loads from employees who would otherwise manually track their project progress.

Automation is cost cutting by tightening the corners and not cutting them. Haresh Sippy

A New Era of Expense Management

LLMs also play a critical role in tracking qualified research expenses. This includes managing a claimant’s time surveys and employee activities, contractor activities, and supplies used during experimental trials. A trained LLM can manage a claimant’s timeline by regularly engaging with clients through emails and voice AI, answering questions specific to their process. Moreover, a trained LLM has the option to connect to existing project management, ERP, and accounting systems. This feature allows for the automatic capturing of eligible activities in real-time, especially for larger and more complex claims. The future of R&D Tax Credits is unequivocally tied to the use of LLMs and AI.

R&D Studies The AI Way

AI is also redefining how R&D studies are conducted. By replacing traditional consulting methods, AI allows for a more cost-effective and efficient approach to these studies. This is a massive leap forward for machine shops, as they can now undertake in-depth R&D studies without the prohibitive costs that were previously associated with such endeavors.

Claim Your R&D Tax Credit Today

By tapping into the power of AI, machine shops can now navigate the complex terrain of R&D Tax Credit claims with relative ease and precision. If you are yet to leverage this innovation, consider obtaining an estimate of how much your R&D Tax Credit could be by clicking on the button below.

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