The tax-preparation industry is experiencing a significant shift due to AI-powered platforms, outpacing legacy players like H&R Block and TurboTax. These platforms are redefining efficiency, accuracy, and user experience, offering investors a chance to capitalize on a market where innovation is outperforming tradition. Between 2023 and 2025, AI-driven tax platforms have captured significant market share, leveraging automation, machine learning, and cloud-native architectures to streamline tax workflows. 77% of tax professionals anticipate AI will have a “high or transformational impact” on their work within five years. AI platforms like TaxSlayer and Cash App Taxes are capitalizing on this trend by integrating real-time error detection, predictive analytics, and seamless integration with accounting software. This reduces human error and costs, while slashing costs. The global tax technology market is projected to grow to $54.3 billion by 2034, with AI-driven platforms dominating growth.