Can Thomson Reuters’ Agentic AI Save 240 Hours on 1040s?

Tired of slogging through 1040s every spring? The standard individual income tax return form, Form 1040, is one of the most time-consuming yet routine tasks for tax professionals, especially during Tax season. Thomson Reuters is turning that pain point into an AI-powered opportunity. Backed by years of billion-dollar AI investments and last year’s acquisition of agentic AI firm Materia, the company just launched Ready to Advise and Ready to Review—two smart tools designed to overhaul tax prep and boost advisory firepower. And it’s not just Thomson Reuters leaning in; major firms like Deloitte are also building out their own agentic AI ecosystems, as seen in their Global Agentic Network launch, which shows that this AI shift is more than a trend - it’s becoming standard practice. These AI-powered tools are transforming the way tax professionals handle preparation and advisory services, making them more intelligent and efficient.

How Thomson Reuters Got Here

Thomson Reuters has invested over $1 billion into AI development in recent years, including its 2023 acquisition of agentic AI firm Materia, all to build tools that go beyond surface-level automation. That investment now powers the rebranded CoCounsel platform, which drives both Ready to Advise and Ready to Review. One dishes out personalized planning strategies with step-by-step execution, the other handles returns from start to e-file. Together, they promise to save tax professionals up to 240 hours a year. But this isn’t just flashy tech. CoCounsel’s agentic AI can plan, reason, act, and react like a tireless junior associate, pulling from IRS code, firm documents, and proprietary content to complete entire workflows, while keeping professionals firmly in control. The real question is, how will your firm utilize those 240 hours? Now might be the time to find out.

More Value, Less Time

Let’s start with what’s already live: Ready to Advise. This AI-powered tool uses client tax data to surface personalized planning strategies and walks professionals through executing them one clear, compliant step at a time. Think of it as your AI-powered partner for building proposals, estimating savings, tracking task completion, and scaling advisory services across the firm. And no, it doesn’t care what tax software you’re using. It’s vendor agnostic at launch, with plans to deepen integrations down the road. Nancy Hawkins, VP of Product Management, says the goal isn’t to replace mentoring, it’s to make junior staff more confident and capable in every client conversation. It’s not just surfacing strategies; it’s simulating what a seasoned advisor would do, and turning it into a repeatable, firm-wide process.

The timing couldn’t be better. With 75% of firms stating that their clients want more advice, and value-based pricing on the rise, Ready to Advise helps bridge the gap between tax compliance and strategic planning, without overwhelming your team with extra work.

“Ready to Review” the 1040?

Now for the return prep side of the house. Mr. Review, currently in early adoption, is expected to launch broadly in Q4, and it’s coming for every repetitive 1040 task that eats up your team’s day. This AI agent automatically processes source documents, pulls data from prior returns, runs diagnostics, and drafts a ready-to-file 1040. It’s not just assisting the process, it’s owning it. With built-in e-filing and a live dashboard for tracking return status, it frees up staff time during the busiest part of the year. That time, in turn, can be reinvested in you - guess what - more advisory work. Paired with Ready to Advise, it forms a complete loop: prep faster, advise better, and get paid more for doing the kind of work clients actually value.

Winning in the Age of AI

“Skate to where the puck is going,” Wayne Gretzky once said. For tax professionals, that puck is now laser-locked on agentic AI. So, how do you stay ahead of the trends? Here’s your cheat sheet:

• Invest in upskilling: Let AI handle the grind while you focus on CFO-level strategy and client relationships.
• Check your tech stack: AI plays best with modern systems. Don’t let outdated tools slow your rollout.
• Keep the human touch: AI crunches numbers, not judgment. You still own the final call.
• Push for value pricing: Over half of firms already use it, and with more hours freed up, you can actually justify it.

As Elizabeth Beastrom, President of Tax and Accounting Professionals at Thomson Reuters, put it: “The future of accounting is about expertise, judgment, and consultation, and with agentic AI, that future is here today.”

Why This Matters Now

This isn’t just Thomson Reuters flexing its tech budget, though, with billions spent on AI R&D, they’re clearly not shy. It’s a serious signal to firms still stuck in spreadsheet purgatory. With talent shortfalls, rising client demands, and compliance growing more complex by the quarter, AI isn’t just a nice-to-have. It’s table stakes. And with the IRS officially pulling the plug on Direct File for 1040s, this kind of private-sector innovation could become the ace up the industry's sleeve. So, the question isn’t whether AI will change the way tax and advisory work gets done. The real question is: Will your firm lead the change or get left behind? Either way, the busy season has just become a whole lot more interesting. Get the latest industry insights delivered straight to your inbox. Subscribe now!