The Internal Revenue Service has reported that average tax refunds are up 10.9% compared to the previous filing period, according to the latest filing data released by the agency.

The increase in refund amounts comes as approximately one in four Americans are now using artificial intelligence chatbots to prepare their tax returns, marking a significant shift in how taxpayers approach filing season.

Tax experts are expressing caution about the growing reliance on AI tools for tax preparation. They warn that these automated systems can produce outdated or inaccurate guidance, potentially leading to filing errors or missed deductions.

The concerns center around AI chatbots' ability to stay current with frequently changing tax codes and regulations. Unlike human tax preparers or established software programs that receive regular updates, AI systems may not reflect the most recent tax law changes or may misinterpret complex tax situations.

Despite these warnings, the adoption of AI tax tools continues to grow as taxpayers seek convenient and cost-effective alternatives to traditional preparation methods. The trend reflects broader consumer adoption of AI technology across various financial services.

Tax professionals recommend that individuals using AI tools for tax preparation should verify the information provided and consider consulting with qualified tax preparers for complex situations or significant financial changes.