Artificial intelligence has begun to change how tax consulting teams approach the Scientific Research and Experimental Development (SR&ED) assessment process. The SR&ED program encourages Canadian businesses to innovate by offering tax credits for eligible R&D activities. Yet, the process of determining eligibility is complex:
- Each project is unique, with varying technical details.
- Data is sparse, fragmented, or sensitive.
- Consultants rely heavily on interviews, questionnaires, and their professional judgment.
This reliance on human experience made the process slow, inconsistent, and resource-heavy. Our client, a leading global consulting firm specializing in SR&ED tax credit advisory, wanted to overcome these challenges with AI.
Executive summary:
The Scientific Research and Experimental Development (SR&ED) program in Canada provides crucial tax incentives for businesses investing in innovation. However, the assessment process to identify eligible R&D projects is subjective, time-intensive, and dependent on experienced consultants.
InteligenAI partnered with a global consulting firm specializing in SR&ED assessments to design a custom AI-powered solution. By combining machine learning (ML), fine-tuned large language models (LLMs), and secure offline execution, we built a system that:
- Standardized assessments with a transparent framework.
- Dramatically reduced evaluation time using intelligent project summaries.
- Enhanced consultant productivity with a human-in-the-loop workflow.
- Ensured data security & compliance by avoiding public APIs.
The outcome: higher accuracy, faster turnaround, and scalable efficiency for tax consultants managing SR&ED claims.
Challenges in traditional SR&ED assessment workflow
The consulting firm faced multiple bottlenecks in their SR&ED evaluation process, which highlighted the urgent need for an AI-powered solution:
1. Subjective assessments
- Project eligibility was largely determined by the consultant’s personal experience and judgment.
- Lack of a standardized framework led to inconsistencies across evaluations.
- High reliance on senior consultants restricted the ability to onboard junior staff effectively.
2. Sparse data availability
- Information about R&D projects was rarely complete.
- Consultants had to rely on lengthy interviews and questionnaires to gather the necessary details.
- It slowed down the assessment process and left room for human error.
3. Compliance risks
- SR&ED projects involve confidential client data, making security paramount.
- Public APIs and third-party LLMs could not be used, requiring a secure, private infrastructure.
These challenges collectively underscored the need for a secure, intelligent, and scalable AI framework that could reduce consultant workload while ensuring compliance.
How did InteligenAI solve it?
1. Assessment framework
We designed a structured framework for SR&ED project evaluation by analyzing historical project data and tax regulations. Using supervised ML models, the system learned to assign weightages for eligibility, improving both consistency and accuracy.
2. Intelligent project summaries
A custom pipeline was developed combining:
- Fine-tuned LLMs trained on tax consulting language.
- Context-aware Retrieval-Augmented Generation (RAG).
- Proprietary architecture for generating project timelines and narratives.
This allowed consultants to quickly generate structured summaries even from limited inputs, cutting down manual effort by 60–70%.
3. Human-in-the-loop workflow
Tax consultants remained central to decision-making. The AI system provided structured outputs, while experts validated and fine-tuned them. This augmented human expertise, rather than replacing it.
4. Offline execution capability
To ensure maximum data privacy and compliance:
- The entire solution was built without relying on public LLMs or APIs.
- Deep learning systems were designed for on-premise execution, enabling faster and safer processing of sensitive data.
Impact of AI on the tax consulting firm
- 70% faster evaluation cycles for SR&ED projects.
- Standardized, audit-ready assessments aligned with Canadian tax laws.
- Improved consultant efficiency, allowing experts to handle more projects without compromising quality.
- Scalable framework adaptable to different geographies and tax credit programs beyond Canada.
The adoption of AI in SR&ED assessments opens up pathways for long-term transformation in tax consulting. By combining domain expertise with intelligent automation, tax consulting firms can reduce manual effort, improve accuracy, and scale operations sustainably.
At InteligenAI, we specialize in designing secure, enterprise-grade AI solutions across multiple industries, including high-compliance sectors like tax, finance, and insurance. Our in-house R&D ensures every solution is production-ready, scalable, and aligned with evolving regulations.
If your firm is looking to streamline SR&ED assessments or modernize tax consulting workflows with AI, connect with us today.
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