AI and SALT: A new frontier

In this episode of the SALT Shaker Podcast, SALT Counsel Jeremy Gove and Chelsea Marmor dive into the evolving intersection of artificial intelligence (AI) and SALT. As AI technology continues to advance, Jeremy and Chelsea draw a parallel for tax purposes to the early days of the internet – when Congress passed the ITFA to avoid taxes stifling innovation. They explore whether the existing framework for taxing software and digital products is sufficient to address AI, or if new legislation will be needed to keep pace. Jeremy and Chelsea highlight recent developments in Indiana and Illinois, where revenue rulings classified remote generative AI chatbot services as non-taxable under the states' existing definitions of SaaS and electronically delivered software. The episode wraps with a brief discussion on the potential for federal intervention in regulating and taxing AI, leaving listeners with key questions about how SALT professionals should prepare for what's next. And, as always, the hosts close out with their overrated/underrated segment – this time tackling the world of science fiction. For questions or comments, email [email protected]. Subscribe to receive regular updates hosted on the SALT Shaker blog.