As the new year begins and the next tax year looms on the horizon, all of those financial tasks you have to do annually are about to come back around.
More people than ever are considering using AI in some way to support their financial obligations, but this might leave you exposed to fines and penalties.
As advanced as AI might be getting, it is important that you understand the value that human accountants still provide.
It seems like every day there is a new innovation that makes AI seem more powerful than before.
Large Language Models (LLMs) such as ChatGPT are being treated by many as a friend or therapist, while video generation software like Sora is letting people create their own films in seconds.
With the scale of the capabilities of these systems, it is little wonder that people are turning to AI and LLMs for financial advice.
However, the rise of AI has not been without controversy and there is an ongoing discussion about the effectiveness of AI and whether these systems have sufficient guardrails in place to protect people.
While humorous, the example highlights that AI and LLMs are not to be trusted without scrutiny, as some obvious errors might be present in the content generated.
Without having the support of an expert accountant, you may not realise that the information is wrong, but HMRC will certainly notice and penalise you accordingly.
There is a big difference between the kind of AI that is used by accountants and the kind that is freely accessible to the public.
Unlike generic AI and LLMs, accountants will only use bespoke software designed to make routine and mundane tasks more straightforward so they can spend more time focusing on important tasks.
The level of expertise that accountants have allows them to effectively use these systems, as they will be able to sense-check all information.
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.
Generic AI and LLMs are also dangerous to use due to the lack of data security present in them.
Unlike the bespoke software that can be used by accountants, generic AI and LLMs will use user data to train future iterations.
This means it is not safe or appropriate to upload sensitive information to AI or LLMs, as you cannot be sure that it will comply with GDPR guidelines.
All software used by accountants will conform to these guidelines, so you can be sure that your data is being handled securely.
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.
