“While AI allows us to get to conclusions faster, it can make mistakes – known as hallucinations – and requires human checking for accuracy. It is not infallible,” writes chartered accountant GAIL FREEMAN.

Maya was signing an engagement letter when she noticed we had clauses about using computer software including AI. 

She said: “Gail, I’m interested in the use of AI and how it impacts me. I am interested to know whether fees might go down as a result of you using AI.”

“The simplest answer I can give you is yes, but no,” I said.

“AI is simply a tool to assist us in doing things faster. There are, however, some difficulties when we use AI. 

“Firstly, we do not know where the servers are located and who will be using your information. So we ensure that we de-identify all data we put into AI so that it does not show client names or anything else that could identify you.

“The Tax Practitioners Board has recently issued draft guidelines in which it says we should protect confidentiality, not disclose information relating to a client’s affairs to any third party unless authorised by the client or required by law to do so.

“While AI allows us to get to conclusions faster and is good at some things such as adding columns of figures, producing tables and doing tax research, it is not perfect. 

“It can make mistakes, known as hallucinations, and therefore requires human checking for accuracy. It is not infallible.

“The Tax Practitioners Board exposure draft also says use professional judgment and maintain competence. AI output must be checked and used only as an aid. Ensure that the final work remains competent and consistent with professional judgment. The code of ethics also applies. We have to make sure that our use of AI and its output is in your best interests.”

I told Maya that I had been using AI quite a bit recently for research.

“It certainly saves time in getting the original question answered. However, the research time to review the accuracy of the information often means that there is little or no time-saving,” I said.

“Obviously, when we save time-we do pass this on to our clients in terms of lower fees. However, this is balanced by all the additional work we have to do to deal with new government requirements.”

For instance, there are new rules coming in from July 1 on anti-money laundering. These new rules have required that in the last three months we have spent a lot of time understanding the new legislation and getting all the new forms and documents required, ready for July 1.

As this is additional new work, it would, of course, add to costs when we have to do relevant work, I told Maya.

“Payday super also comes in from July 1, which means all our business clients may need additional help dealing with the new system,” I said.

“We also have the issues I wrote about recently, including changes to the portable long service leave scheme in the ACT for workers in certain industries. 

“There are proposed increases in wages to 18 to 21-year-olds who will now receive adult wages. These changes will likely lead to additional fees which could negate the benefits from AI. As you can see this isn’t a simple question.”

Maya said: “I had no idea when I asked that question what the impacts would be and I understand why you said yes, but no!”

If you want further information on AI use or issues confronting small business contact the expert team at Gail Freeman & Co Pty Ltd on 02 6295 2844, email [email protected] or visit gailfreeman.com.au

Disclaimer
This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser. Authorised Representative of Lifespan Financial Planning Pty Ltd AFS Lic No. 229892.

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