If you are dreading the annual tax and financial obligations that are coming your way, you might be considering how best to make your life easier.
More people than ever are considering using AI to partly or fully handle their filings for them, with many more treating it as a source of financial advice.
However, it is important to know the risks of doing this and why AI is not able to replace a human accountant.
Why should I not use AI for my finances?
You may have noticed the capabilities of AI increasing with each passing day.
Large Language Models (LLMs) like ChatGPT are able to increasingly mimic human conversation, while video generation AI, like Sora, creates deceptively realistic videos.
With this in mind, it is little wonder that more people feel they can trust AI to handle their filings and are seeking financial advice from it.
While AI can have its merits, there are ongoing discussions about the safety and security of consumer-facing systems with a particular focus on whether guardrails are sufficient for protecting people.
Such an example might sound ridiculous, but it is emblematic of how AI and LLMs can present falsehoods with confidence and insist on a fabricated reality.
If you are seeking financial advice from an AI, you might not be able to tell when it has done the accounting equivalent of turning a police officer into a frog.
Though the error might slip your notice, HMRC will see it and rightly inflict penalties and punishments for careless mistakes.
Do accountants use AI?
Some accountants have begun integrating AI support into the systems they use, but this is vastly different from the generic AI and LLMs available to the public.
Accountants often use bespoke AI that is designed to alleviate the tedium of mundane tasks through automations.
The expertise of the accountant allows them to sense-check any information to ensure that nothing erroneous gets added during routine processes.
A good accountant would not rely solely on AI to process your financial information and would only utilise systems that have been designed to assist with work.
Bespoke systems also have stricter controls over data processing in order to comply with GDPR guidelines.
Generic AI and LLMs have limited protection and there is a risk that confidential information uploaded to them will be used to train new iterations of the programme.
This means you might be exposing yourself to security risks if you give an AI or LLM access to your sensitive financial data.
Ultimately, no AI can replace the expert advice available to you from your accountant, as only a human can get to know your unique financial situation and provide insightful advice.
Speak to our team for reliable financial advice and support.