Two leading advisor technology firms, Nitrogen and FP Alpha, have launched new artificial intelligence-driven tax planning features, aiming to help RIAs deliver more personalized and actionable tax advice as the year-end planning season approaches.
Nitrogen’s latest product release introduces the AI Tax Center, a tool designed to simplify and clarify tax discussions with clients. The software combines a “Tax Snapshot” visualization of the 1040 tax form with AI-generated insights that highlight key data points, enabling advisors to address tax planning in a more client-friendly manner.
The update is part of Nitrogen’s Fall 2025 product release, where it outlined a broader push to integrate AI across its suite of tools including proposal generation, investment research, and meeting preparation modules.
“Nitrogen has always been built around a single guiding objective: helping advisors absolutely crush it in their meetings with prospects and clients,” Justin Boatman, chief product officer at Nitrogen, said in a statement. He added that AI is enabling the company to “take this to another level for advisors.”
Meanwhile, FP Alpha has announced the general availability of its NextGen Tax Insights, an AI-powered feature that analyzes client tax returns and financial data to surface tailored tax savings opportunities. According to the company, the tool draws on a holistic data model that incorporates income, demographics, assets, and other financial details, providing deeper and more relevant insights than traditional tax analysis.
“When a client gives you their tax return, they want you to turn around tax savings ideas. FP Alpha does that with no work needed from the advisor,” said Andrew Altfest, founder and CEO of FP Alpha. He described the new feature as empowering advisors to deliver “highly relevant, data-driven insights based on each client’s specific tax profile and life situation.”
Robert S. Keebler, partner at Keebler & Associates, commended the tool's AI-driven personalization that moves "beyond static insights to dynamic, scenario-based projections."
FP Alpha’s system also explains the rationale behind its recommendations, such as the potential impact of the increased standard deduction for seniors or the new $40,000 cap on state and local tax deductions under The One Big Beautiful Act.
The company emphasizes a responsible approach to AI, with its models being monitored for accuracy and compliance, along with data getting anonymized and encrypted to address privacy concerns.
"The models only have a memory to a specific client, the data is anonymized, encrypted, and explained," Altfest said, noting that the odds of the AI generating hallucinations "are near zero."
The launches come at a time of heightened demand for tax planning solutions among advisors. According to the recent T3 2025 software report, more than one-half of advisory firms are now using advanced tax planning software, reflecting a broader shift toward more comprehensive and integrated planning tools.
Survey data from Cerulli show more high-net-worth practices now adopt tax planning, preparation, and compliance services, growing from 29% in 2017 to 38% in 2024. When asked to identify their clients' most important investment goals and objectives, 73% said tax minimization was "very important," with the remaining 27% tagging it as "somewhat important."
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