Why businesses shouldn’t take AI’s word when it comes to financial advice

Individuals and businesses are increasingly using Large Language Models (LLMs) for things such as financial advice.

Doing that can pose significant danger to your business, including compliance and regulation failings, damage to your company’s reputation, and fines exceeding the thousands.

This is because the information given out by LLMs is not always accurate, and that means if you take their advice, you and your company can find yourself in a very difficult position.

You can alleviate those risks by speaking and working with accountants who are there to serve your business and advise you on all aspects of finance without any risk.

What can happen if I use an AI chatbot’s financial advice?

Asking AI for financial advice does come with serious risks, including inaccurate information, potential data breaches, your sensitive financial information given to an open network, compliance failings and a lack of or no human element.

As it does make mistakes, if you choose to take its advice and action any steps from it, you could be doing serious harm to your company’s finances, especially when it comes to your tax and finance deadlines.

Any inaccurate information found by HM Revenue and Customs (HMRC) opens up an unwanted can of worms, like HMRC investigations and the risk of fines, criminal convictions, and reputational damage, which will have a knock-on effect across the whole business.

Your data could also be breached, meaning your company’s finances could be available to anyone, including criminal networks. Because of how they are designed, AI chatbots may give out biased information, which may not even relate to your business.

You also need to seriously consider how it could impact your compliance obligations. Different sectors will have different regulatory bodies and they will want to ensure their guidelines are followed.

The financial advice you take could impact your compliance obligations, leaving you in a difficult position where you may face investigations and punishments.

Why are accountants so important for my business?

For something as important and specific as your company’s finances, accountants come with zero risk and can prove to be game changers for helping your business reach its potential.

Accountants are knowledgeable and experts in finance, they provide tailored advice and support that suits your business. We will give you the tools to build a clear picture of your finances and answer all the questions you have to ensure any doubts are quashed.

We are valuable in terms of supporting with tax and growth opportunities, helping you meet deadlines and exploring your expansion plans.

We can help you confidently manage your finances and ensure your data is correct without putting your business at risk and ensure your business is stable for now and the future.

For all tax and finance concerns, contact us for expert support