AI tools mislead businesses seeking accounting advice, reports warn
A growing number of businesses are turning to artificial intelligence (AI) tools for financial advice, often before consulting qualified accountants. However, evidence suggests that businesses are treading a fine line between efficiency and risk.
By Ro Elvinia
Ravical, a technology company that provides AI-powered workflow solutions for professional service firms, conducted a survey amongst 500 senior decision-makers within UK accountancy firms and released their 2025 Accounting in the Age of AI report. They found that 64% of businesses now use public AI chatbots for accounting advice before consulting their accountants. These business operators, many of whom lack technical accounting knowledge, are rather experimenting with AI tools such as ChatGPT to solve accounting issues on their own.
The result, according to the study, has been costly. More than 50% of UK accounting firms surveyed said they had to correct advice provided by AI, while another 20% are frequently asked to intervene. Many accountants reported that the AI-generated advice their clients received had been misleading or incorrect, which in some cases led to misinformed financial decisions.
Ravical’s co-founder and CEO, Joris Van Der Gucht, said, “The research highlights the mounting pressure on accountants as client expectations rise, shaped by the speed, clarity, and proactivity they now experience when engaging directly with technology.”
However, he cautioned that while AI tools are transforming workflows, they cannot replace human expertise. “AI will not replace accountants, but it will change the way they work. We are entering a post-knowledge economy, where knowledge alone is no longer a differentiator. The future of the profession lies in AI-powered collaboration between advisors and their clients,” he said.
The hidden dangers for non-accountants
The risks are most evident when businesses use AI tools to interpret complex accounting or tax matters without understanding regulatory frameworks. In some cases, AI outputs have appeared convincing but have been factually wrong, leaving companies to face potential compliance breaches or inaccurate reporting.
In Australia, this issue has also caught the attention of regulators and accounting bodies. According to CPA Australia’s Audit and Assurance Policy Lead, Tiffany Tan, firms will not be using the free version of ChatGPT in obtaining evidence as the AI tool is only drawing outdated data. Tan added that while ChatGPT can generate responses in a convincingly articulate fashion, the information may not necessarily reflect an accurate response to what is being asked.
The Australian Taxation Office’s Second Commissioner Client Engagement, Jeremy Hirschhorn, issued a similar warning, stating that AI engines have the ability to “generate absolutely compelling, plausible but completely incorrect responses,” particularly when dealing with tax matters.
For businesses unfamiliar with Australia’s taxation and reporting systems, especially international companies expanding into the country, such misinformation can easily lead to errors in filing or non-compliance with ATO standards.
Benefits of AI, but only with human oversight
Despite these risks, AI remains a valuable tool when used under the guidance of professionals. The CPA Australia report referenced a study by OpenAI and the University of Pennsylvania which found that accountants are amongst the most exposed occupations to AI’s potential, with a 100% exposure score for tasks where AI could reduce completion time by 50% or more.
In practice, this means AI can help accountants automate repetitive tasks, prepare reports faster, and allow more time for strategic or advisory work. Some firms use AI to improve efficiency or to ease staff shortages by handling routine data entry. However, CPA Australia Public Practice Manager Kristen Beadle warned that users must understand the implications of what client information they may be sharing with the technology that can be used by malicious actors.
A risk for international businesses operating in Australia
For international businesses entering Australia, the growing reliance on AI tools for accounting guidance can be particularly risky. Local compliance standards, tax frameworks, and ATO reporting obligations differ significantly from those of other jurisdictions. International businesses that depend on generalised AI systems without professional support may receive outdated or jurisdictionally irrelevant advice, potentially exposing them to financial penalties or legal risks.
The ABN Australia advantage
At ABN Australia, we understand the balance between technology and expertise. While AI can streamline processes, it cannot replicate the insight and contextual understanding of qualified accountants who live and breathe Australian compliance every day.
Our experienced accounting and tax professionals assist international businesses in navigating complex Australian regulations, ensuring accuracy, compliance, and commercial clarity. By combining human expertise with the efficiencies of technology, ABN Australia helps clients leverage innovation without compromising governance.
AI may be changing the way accountants work, but in matters of compliance and cross-border accounting, the human touch remains irreplaceable. If you would like to learn how our team can support your international business in Australia, please get in touch with us today.
Published: 20th Oct 2025 | Last updated: 20th Oct 2025
About the Author