AI is now a tax question, and states are answering it without you
States are beginning to issue formal guidance on how AI tools are taxed, and the decisions being made now will set the precedent for how the entire category is treated going forward. Indiana recently ruled that generative AI chatbot services are non-taxable. Kentucky reached the opposite conclusion. With no uniform framework in place, whether your AI product is taxable may come down to technical distinctions your compliance team hasn't been asked to think about yet.
Download this article to learn:
- What Indiana's ruling actually says, and why the criteria states are using will get harder to apply as AI products grow more sophisticated
- How Kentucky's diverging position illustrates the state-by-state inconsistency compliance teams can't afford to ignore
- Why the line between "AI as a feature" and "AI as the product" is the central tax question emerging across jurisdictions
- How to audit your AI tools and pressure-test your compliance posture before more rulings follow
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