Artificial intelligence is improving efficiency in accountancy but continues to struggle with complex tax matters and financial advice, according to an adviser at a leading independent firm.
Holly Walker, Tax Senior at HB&O, has highlighted how AI can be a powerful tool to streamline processes, but it is still not ready to advise on complex matters where small nuances can change an outcome completely.
The firm is working with its clients to advise when they should and shouldn’t use AI, as even using the technology to gain initial advice can cause challenges later in the process.
This is key in advisory services – particularly in areas such as tax and financial planning, where accurate and personal advice from a trained professional remains vital.
Holly said: “AI can be incredibly useful for automating tasks and speeding up certain areas of work, but when it comes to tax there is still so much detail and nuance that it doesn’t fully understand.
“While we aren’t seeing many clients using AI for advisory, there have been a handful of examples, and it’s clear that a small oversight or misunderstanding from AI can have a major impact on a client’s position.
“For example, we were working with a client on matters related to the tax treatment of a trust.
“The initial briefing email we had contained a phrase that didn’t make sense in the context and would have impacted on our advice. This was due to the client’s later admittance of using AI, copying and pasting a passage into the body of their email, without an understanding of what it meant.
“We have found that even when asking a straightforward question, it will present an answer that looks correct and has evidence to support, but ultimately it isn’t right or fails to provide sufficient detail so other implications can be overlooked.
“It doesn’t yet understand the intricacies or the context behind the numbers.”
HB&O has an internal group focused on careful use of AI to improve efficiency and administration tasks.
This includes the firm’s Virtual Finance Office (VFO) team using technology to scan invoices and input them directly into systems such as Xero, cutting down on manual data entry and freeing up more time for business advice and client support.
“AI can save time and, in some cases, improve accuracy, but it’s about making sure we use it safely and responsibly, added Holly.
“We work with a lot of owner-managed businesses and ultimately people still want to work with people.
“Clients increasingly value that human connection and having an expert on the phone or across the table to explain matters, offer reassurance and make informed decisions.”
