In a growing trend, Canadian businesses and taxpayers are turning to general-purpose artificial intelligence (AI) tools, such as ChatGPT, for bookkeeping and tax-related inquiries. However, financial experts warn that this reliance may lead to significant inaccuracies and disputes with the Canada Revenue Agency (CRA). A survey by Dext revealed that by 2025, 76 percent of accountants expect to see an increase in clients using large language models for financial advice, which often results in frequent errors.
The survey, which gathered insights from 500 accounting professionals, identified prevalent issues, including misinterpretation of business expenses (44 percent), incorrect tax claims (43 percent), and payroll errors (35 percent). These inaccuracies not only create extra work for accountants but can also incur additional costs for businesses and individuals. Alarmingly, 27 percent of respondents indicated an increased risk of business insolvency, while 42 percent noted concerns about AI misuse leading to fraudulent claims.
Melissa Robertson from CPA Canada highlighted the importance of reviewing AI-generated outputs, especially as transaction volumes rise. She cautioned against overreliance on AI without proper validation. Ryan Minor, also from CPA Canada, agreed, noting that while AI can aid in document retrieval, it may not always reflect the latest CRA guidelines accurately.