Growing backlash to AI could impact approach to R&D tax relief claims

AI is under constant scrutiny, with its merits and risks being extolled by its supporters and detractors alike.

Claims that humanity’s demise may be swift if AI continues to advance and reports that agents are now attacking governments are doing little to enamour the general public with a technology that is repeatedly positioned as something that will cause mass unemployment.

While a defence of AI has been for its utility in research, it is now becoming clear that even this is up for debate and the utilisation of AI could pose a long-term risk to research.

What is the negative reaction to the use of AI in research?

While challenging to specifically measure, public trust in AI does not seem to be particularly high given the strong belief that generic AI systems produce heavily unreliable data.

Though there is plenty of anecdotal evidence to support this, an independent benchmarking company determined that the reliability of responses from AI models is still painfully low.

Of the 546 different models tested, it was found that only 110 of them generated more accurate than inaccurate responses.

Even then, the top-performing AI model was only able to achieve an accuracy score of 46 out of 100, meaning that it gave, on average, 46 more correct answers than incorrect answers.

The general public is unlikely to have conducted thorough research or consulted accuracy scores for AI models, but a sense of distrust persists among them all the same.

Research conducted into the public view of AI in research found an intense hostility towards public funds being used in research that heavily featured AI use.

Although 77 per cent of respondents favoured the idea of publicly funding R&D, the level of support dropped to 42 per cent if the research used generative AI.

Between 34 per cent and 40 per cent of respondents stated they would trust the science and scientists less if generative AI was used, likely due to a concern that incorrect information had been fed into the process.

With hostility towards AI being stronger among scientifically literate, politically liberal, younger and female respondents, it is worth considering what this could mean for research and the future of R&D tax reliefs.

Will the use of AI cause problems with claiming R&D tax relief?

We recently discussed how R&D is facing an uncertain future as it struggles to maintain the necessary public perception to safeguard access to funding in the future.

For accountants looking to help clients with R&D and for the innovative businesses themselves, understanding more about how this situation is manifesting and the specific pain points can help when preparing for the future.

The Government faces increasing pressure to ensure that public money is spent wisely, so the growing concern around R&D from different demographics could risk making R&D tax reliefs too unpopular to support.

While those without a high level of scientific engagement may write off research as having little value to their lives, those with scientific literacy may be deterred by the use of AI.

Additionally, the lack of reliability with AI models is a persistent issue that should be viewed as its own risk to the R&D tax relief claim process.

Relying on an AI for guidance around R&D tax reliefs could see invalid projects be submitted, qualifying expenditure left out, or ineligible costs counted.

HMRC also prefer Additional information Forms (AIFs) to be produced by humans with the direct input of competent professionals.

AI generated content remains easily detectable, with tells persisting even as the technology improves.

Using AI in this way could result in HMRC launching an enquiry to determine the validity of the claim if it is concerned at the lack of human input.

There are also concerns that using AI for R&D tax relief claims could expose sensitive information to competitors, risking the position of an innovative business in the long term.

Seeking the support of an R&D tax consultant remains the most effective way to make the most of R&D tax relief claims.

Our expert team are familiar with a range of sectors and is able to compile fully compliant R&D tax relief claims that capture the full spectrum of qualifying costs.

Accountants can help clients with R&D by helping them prepare for a claim and compiling the necessary figures to submit the R&D tax relief claim with the original tax return, as this can improve the claim’s standing with HMRC.

We are happy to work with accountants and with innovative businesses directly to make sure that R&D tax reliefs are being used effectively.

Should the R&D tax relief scheme change again in the future, whether that is due to public pressure or other factors, we will help you to adapt to the changes.

For reliable R&D tax relief support, get in touch with our team.

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.