Drake Software Adds AI Tools to Streamline Tax Prep for 2026

Drake Software, a professional tax software provider based in Franklin, N.C., announced an expansion of native artificial intelligence features ahead of the 2026 tax season, the company said Thursday. The updates are designed to reduce manual workload for tax preparers and free up time for client-facing work.

The new capabilities include AI-powered tax document extraction, which automates the pulling of data from client paperwork — a task that has traditionally consumed significant preparer time during peak filing periods. The company is also rolling out a reimagined client intake process, signaling a broader effort to modernize how firms onboard and gather information from taxpayers.

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A third addition is an in-workflow Assistant, a tool embedded directly into the software's existing processes rather than requiring users to switch between applications. By integrating AI at the workflow level, Drake aims to lower the friction typically associated with adopting new technology in busy professional environments.

The announcements position Drake among a growing number of tax and accounting software vendors racing to embed generative and automation-driven AI into core products. For small and mid-sized tax practices in particular, tools that cut data-entry time could translate directly into the capacity to serve more clients during compressed filing windows.

Drake Software has been a recognized name in professional tax preparation for independent preparers and small firms. The 2026 season updates represent the company's most direct push yet into AI-native functionality rather than bolt-on integrations. Continue reading at All Financial Services & Investing.