OpenAI and Thrive Holdings have introduced a cutting-edge tax preparation AI. This innovative system is designed to improve its accuracy autonomously, enhancing efficiency and effectiveness in preparing tax returns.
How did the Tax AI evolve so quickly? The Tax AI, which is utilized across Crete’s extensive network of over 30 accounting firms, began with an accuracy rate of only 25% when it launched. Remarkably, within six weeks, its accuracy surged to 86%. The improvement continued, leading to an impressive peak accuracy of 97% in drafted tax returns. This significant advancement was made possible through continuous autonomous feedback loops, which allow the AI to learn from real-world usage data and refine its processes without ongoing manual adjustments.
What impact does this have on tax preparation time and efficiency? The introduction of this AI technology has led to a reduction in tax preparation time by approximately one-third. Simultaneously, the overall throughput for tax submissions has increased by roughly 50%. The AI is capable of generating tax engine submissions ready for human review, liberating tax professionals to concentrate on more complex client interactions and judgment-based tasks.
Why is OpenAI interested in service industries? OpenAI made a strategic decision to acquire a non-monetary stake in Thrive Holdings on December 1, 2025. This partnership enables OpenAI to integrate its researchers, engineers, and product developers directly into Thrive’s operations. Thrive Holdings, established in April 2025, was founded by Thrive Capital with the mission of transforming traditional service industries with advanced technology solutions. Crete’s network of accounting firms serves as the inaugural testing ground for this vision, and the Tax AI was developed over a dedicated six-month timeline.