• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechPointCloud

H&R Block Is Enlisting IBM’s Watson To Help With Your Taxes

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
February 1, 2017, 6:30 PM ET

H&R Block’s customers will soon be able to get tax advice from IBM’s artificial intelligence-powered seer Watson.

The tax preparer’s workers will use IBM’s Watson data crunching service to answer customer questions, find obscure deductibles, and presumably help clients score bigger tax refunds.

The initiative, which starts Feb. 6, is intended to help liven up the often long and mundane meetings between customers and H&R Block tax professionals. The tax services giant is hoping that the digital helper will attract more customers to its offices instead of those customers doing their taxes at home using competing online services like TurboTax.

Get Data Sheet, Fortune’s technology newsletter.

The deal puts IBM’s Watson data analytics service in front of the millions of people who visit one of H&R Block’s 10,000 U.S. offices during tax season. The Watson data sifting technology is one of IBM’s key businesses including cloud computing and cybersecurity that it hopes will revive the company after several years of declining sales.

“This is not a promotion,” said H&R Block CEO Bill Cobb. “Watson is not cheap.”

For the multi-year Watson project, Cobb said that H&R Block bought 70,000 HP, Inc. (HPQ) monitors that its tax professionals will use as second screens to show customers detailed information about their taxes. For example, tax consultants may have one screen displaying a customer’s W-2 form while the other screen shows people how much money they received last year in federal and state refunds.

During tax consultations, H&R Block representatives will ask customers for details about their finances, their occupations, and whether they bought a house in the previous year. That information is logged into the system so that Watson can get a better picture of an individual’s situation and provide better advice (in some cases, advice or tax credits that H&R Block’s tax preparers wouldn’t know off the top of their heads).

David Kenny, the senior vice president of IBM’s (IBM) Watson and cloud division, gave the example of customers who want to know whether an appointment with a veterinarian for their emotional-support dog qualifies for a tax break. The answer: yes, if they can prove that they are using the animals to help them with medical ailments.

H&R Block gave IBM scores of common customer tax questions to train Watson to understand how to respond to questions, he said. They also fed the software with thousands of documents about various state and federal tax laws.

The Watson system is analogous to Apple’s (AAPL) Siri digital assistant that people use to ask basic questions, except it’s been specifically trained to answer questions involving taxes and related information, using an AI technique called deep learning.

H&R Block (HRB) has had its workers test Watson with various questions and then graded them based on their accuracy. This process was intended to helps train the software to provide the best responses.

“It’s not like it reads it automatically and it just knows it,” Kenny said.

H&R Block has tested Watson with tax preparers and customers in 150 offices, starting with an initial trial in five offices beginning in September. Cobb said that customers seem to be excited about the Watson system, with some people saying that it’s finally fun to get their taxes done.

Still, people who are concerned about privacy may worry that their personal tax information will be fed into Watson; H&R customers will not be able to opt-out of the service. H&R Block responded that user data is anonymized and that no personally identifiable information like Social Security numbers will be sent to IBM’s data centers, where the Watson software sifts and analyzes information.

The Watson initiative is a “long-term play” by H&R Block to win customers, Cobb said.

For more about IBM, watch:

IBM is taking a big gamble with its Watson brand with the H&R Block deal. If its technology fails during peak tax season in April, generates bad answers, or complicates the tax process beyond its current inconvenience, the company will take a big PR hit.

Both IBM and H&R Block acknowledge that the technology is a work in progress and that the system should progressively get better as more people ask it questions.

As part of its marketing for the initiative, H&R Block has enlisted a new pitch man, actor Jon Hamm, from Mad Men, to appear in its new Watson-themed commercials. One of them will debut during the Super Bowl on Sunday.

“Jon is super excited about it,” said Cobb. “We showed him the tech and he was all in.”

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Most Popular

placeholder alt text
Economy
The $38 trillion national debt is to blame for over $1 trillion in annual interest payments from here on out, CRFB says
By Nick LichtenbergDecember 17, 2025
19 hours ago
placeholder alt text
Success
As millions of Gen Zers face unemployment, McDonald's CEO dishes out some tough love career advice for navigating the market: ‘You've got to make things happen for yourself’
By Preston ForeDecember 16, 2025
2 days ago
placeholder alt text
Economy
America's $38 trillion national debt 'exacerbates generational imbalances' with Gen Z and millennials paying the price, warns think tank
By Eleanor PringleDecember 16, 2025
2 days ago
placeholder alt text
AI
'Robots are going to be amongst us': Qualcomm exec says buckle up for the next 5 years. Your car is going to be the first shoe to drop
By Nino PaoliDecember 17, 2025
1 day ago
placeholder alt text
Innovation
An MIT roboticist who cofounded bankrupt Roomba maker iRobot says Elon Musk's vision of humanoid robot assistants is 'pure fantasy thinking'
By Marco Quiroz-GutierrezDecember 16, 2025
2 days ago
placeholder alt text
AI
IBM, AWS veteran says 90% of your employees are stuck in first gear with AI, just asking it to ‘write their mean email in a slightly more polite way’
By Marco Quiroz-GutierrezDecember 16, 2025
2 days ago

Latest in Tech

RJ Scaringe, wearing a dark green shirt and glasses, gestures with both hands as he speaks.
North AmericaAutos
Rivian CEO says midprice EV sales are still 50% Tesla: ‘That’s not a reflection of a healthy market’
By Sasha RogelbergDecember 18, 2025
28 minutes ago
Photo of the Endra founding team, including Anton Juric, the COO, at left, Niklas Lindgren, CEO, in the center, David Rydberg, technical cofounder, and Gustav Hammarlund, technical cofounder, right.
AIArchitecture
Exclusive: Swedish startup automating mechanical, electrical, and plumbing design for commercial buildings raises $20 million in seed round
By Jeremy KahnDecember 18, 2025
28 minutes ago
NEW YORK, NY - NOVEMBER 23: Michael Burry attends the "The Big Short" New York premiere at Ziegfeld Theater on November 23, 2015 in New York City. (Photo by Jim Spellman/WireImage)
InvestingMarkets
‘Big Short’ investor Michael Burry piles misery onto tech stocks after Oracle fails to close AI debt deal
By Jim EdwardsDecember 18, 2025
37 minutes ago
NewslettersTerm Sheet
A federal investigation is underway after Nevada’s safety regulator suddenly dropped violations against Boring Company
By Jessica MathewsDecember 18, 2025
1 hour ago
Rohit Prasad, SVP and head scientist of artificial general intelligence at Amazon, speaking at Fortune Brainstorm AI 2024 in San Francisco. (Photo: Stuart Isett/Fortune)
NewslettersFortune Tech
Amazon shakes up its AI leadership
By Andrew NuscaDecember 18, 2025
2 hours ago
InnovationRobotics
We ‘don’t have enough manpower’ for the delivery boom, says Singapore-based robotics founder
By Angelica AngDecember 18, 2025
3 hours ago