Refer to the scenario in RA2.7 regarding Bancroft Corporation (BC). Jason has been reading lately about artificial intelligence and big data. He notes during a quick Internet search that a company called Blue J Legal has created a product that scans and analyzes all prior court rulings on a particular legal or tax topic and helps predict whether the tax assumption made or position taken by a company is sound based on prior rulings. He notes that there are numerous other companies using artificial intelligence and “Big Data” to gather evidence, which is then analyzed. These tools do cost money, however.

Instructions
a. How might artificial intelligence and Big Data help Jason in dealing with the measurement uncertainty?

b. As a potential investor in BC, how much time and expense do you think BC should go to in order to make sure that the tax liability measurement is representationally faithful?