AI promises to simplify Canada’s labyrinthine tax code, but a new Dext survey shows it’s doing the opposite.
Accountants are now spending up to 10 hours/month fixing AI‑generated mistakes and fielding client disputes over faulty advice.
The bulk of errors stem from misinterpreted expenses, payroll, and capital‑gain rules, with 70% of respondents seeing clients challenge professional guidance using AI outputs.
For executives, the takeaway is clear: without robust guardrails, generative AI becomes a liability that can erode client trust, increase compliance risk, and drive up operational costs.
Actionable steps for leaders:
Implement mandatory AI validation protocols to require human review before any AI‑generated recommendation reaches a client (referred to human in the loop).
Invest in domain‑specific training data or partner with vetted providers to improve model accuracy.
Establish a cross‑functional oversight board (tax, compliance, IT, risk) to monitor AI performance and flag systemic errors.
Are you confident your firm’s AI tools are delivering value or are they silently inflating workloads and exposure?
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