Businesses are suffering financial losses from faulty AI advice
Half of UK accountants and bookkeepers have said businesses have suffered financial losses due to AI slop that has caused ‘avoidable mistakes’ in the books.
New research by Dext found that nearly a third (31 per cent) of accountants and bookkeepers encounter client mistakes on a weekly basis, caused by wrong or misleading AI-generated financial or tax advice.
This comes as almost two-thirds of businesses were revealed in October to be using public AI chatbots for advice before consulting their accountant.
A sharp rise in errors accompanies the growing reliance on public AI platforms. “The damage is no longer hypothetical,” Paul Lodder, vice president of accounting product strategy at Dext, stated.
The most common errors reported include incorrect interpretation of business expenses (46 per cent), incorrect VAT claims or charges (41 per cent), flawed personal tax planning (35 per cent), payroll errors (34 per cent), and incorrect business tax planning advice (34 per cent).
HMRC crackdown looms
Accountants expect risks to intensify in 2026 if businesses continue to rely on public AI tools without professional oversight, with warnings of penalties and HMRC scrutiny.
Over 30 per cent of accountants have warned of a higher risk of insolvency or business failure.
In contrast, others expect increased misuse of AI outputs to justify inappropriate or fraudulent claims (43 per cent), rising fines and penalties (38 per cent), and greater HMRC scrutiny due to incorrect or late filings (37 per cent).
HMRC is seeking to increase enforcement actions with plans to employ 5,000 new compliance officers by 2029/30, with recruitment beginning in 2026.
In addition to the penalties and risks, AI platforms’ increased errors are costing businesses more in billable hours as accountants spend time finding and correcting mistakes.
Lodder noted, “If we head into 2026 with more businesses treating AI outputs as trusted tax and financial advice, without professional oversight, the consequences could be severe.”
As a result, more than nine in ten accountants believe public AI tools should be regulated, or even restricted, when it comes to providing financial or tax-related advice.