H&R Block (HRB) said Tuesday it was collaborating with Microsoft-backed (MSFT) OpenAI to develop a generative artificial intelligence application for tax professionals.

The solution will deliver tailored insights that tax professionals can share with their clients based on their unique circumstances, and be based on OpenAI's advanced models and data from H&R Block service, Tax Institute.

The initial phase of the product will launch later this year, followed by a larger-scale deployment for tax season 2026, H&R said.

Both sides will also study the impact of the offering and assist H&R in building scalable solutions to address a range of AI use cases, it said.

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