AI-powered tax tools are now a regular part of filing. Platforms are adding generative AI to automate parts of tax prep and give real-time guidance as AI becomes more integrated. And with the IRS’ Direct File program suspended, fintech tools carry even greater responsibility to help Americans navigate tax season.
But just because these tools exist and people are using them doesn’t mean they make the process easier. In a recent survey, 34 percent reported that AI tools or digital filing options make the process easier. Talk to taxpayers and you’ll find many say they enter the experience feeling uncertain or skeptical.
AI can explain the rules, highlight deductions, and walk people through each step. But to make a tool people want to use, fintech teams need to design it around how consumers think and act.
The key is designing for people, not tax professionals. That means assuming people might be unsure, giving them guidance, and building helpful context into the experience instead of leaving them to hunt through help guides.
Why AI tools aren’t Simplifying Filing
Many consumers find AI-powered tax tools don’t meaningfully improve filing, and some avoid them altogether. This trend differs across age groups. For example, those 25-35 years are most likely to engage with AI tax tools, with 46 percent indicating they made tax filing somewhat or easier. On the other hand, those 55-64 are least likely to use these tools. This perceived ease of use declines significantly with age, falling to 17 percent for those aged 55-64, and just 6 percent for the 65+ age group.
Our data shows that older consumers are less familiar with AI and tend to view it more negatively, often expressing lower levels of trust. Their concerns center on losing access to human interaction, and they are less likely to recognize the benefits of tools that remove people from the process. As a result, driving adoption among this group requires clearer communication of value and more guided, supportive experiences.
This doesn’t only apply to older consumers – all users need to see the value right away. Things like saving time, simpler decisions, and clear guidance will influence their choices.
Ways to Cut the Complexity:
- Break big steps into smaller, guided actions
- Focus on the most important info at each stage
- Cut down the number of decisions users have to make
- Show explanations for recommendations
- Summarize tricky rules in clear, actionable language
AI Adoption and Impact Vary Across Consumers
Those steps can reduce friction, but AI adoption and how helpful people find it still varies widely. Awareness isn’t the same everywhere, which gives fintech teams a chance to tailor the experience for different users. For example, people in the West tend to find AI tools a bit easier (26 percent vs. 21 percent overall), while those in the Midwest are more resistant—33 percent don’t use them at all. At the same time, men are more likely to find AI tools helpful (40 percent) compared with 27 percent of women.
One approach won’t work for everyone. Fintech teams should focus on guiding and supporting users who need extra help or aren’t using the tools yet.
Ways to Connect with All Consumers:
- Provide step-by-step onboarding for people who haven’t used the tools much
- Give contextual explanations for users who find the tools tricky
- Use adaptive workflows and personalized prompts to guide decisions
- Highlight recommendations clearly to build trust and confidence
Designing based on how people behave helps create AI experiences that work for everyone.
Consumers Need Confidence Before They Trust AI Guidance
Just because people try AI tools doesn’t mean they trust them. About a third avoid them altogether, and 22 percent say the tools don’t make filing easier. Even the 3 percent who find things harder are early users running into bumps.
Consumers need AI recommendations to make sense. If the suggestions are confusing, people stop trusting the tool and use it only as a secondary reference.
How to Help People Build Trust with AI:
- Pair recommendations with simple explanations
- Show how each step improves results
- Give users simple ways to review outputs
- Highlight key actions with signals that they’re correct or complete
- Double-check critical steps before final submission
Building trust into the design makes people feel confident and more likely to keep using the tool.
Designing AI That Works for Real Consumers
People won’t use AI tax tools or see their benefits until they make sense, are easy to use, and feel trustworthy. The next wave of innovation will come from designing with real consumers at the center. That means anticipating uncertainty, embedding context, and making trust visible throughout the experience.
The best tools work for everyone, reflecting the diverse people who use them. By basing design on real behavior and insights, fintech teams can create experiences that feel intuitive, guide users, reduce friction, and boost confidence during tax season.
The author, Joyce Adams, is a Senior Customer Success Manager at Attest.