We recently reported on a tribunal case where a professional adviser had inadvisedly used what turned out to be an ‘AI hallucination’ in their professional advice to a client. Unfortunately, this is not an isolated example.
More recently, we became aware of a case in which an AI tool suggested that certain construction costs would qualify for zero rating and even generated a ‘certificate’ that could be sent to a supplier. In fact, the relief identified by the AI tool was again a hallucination and the supplies were standard rated.
This is a useful reminder that AI-generated advice should be checked against the original source material before being relied upon. This can mean reviewing the relevant legislation or HMRC notices.
As AI becomes increasingly embedded within charity finance and tax functions, CTG is exploring the development of practical guidance for the sector. We welcome members’ views on how AI is used within their organisations and the opportunities and risks it presents. You can provide your feedback through our survey.