ChatGPT Is Not a CPA

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Survey Gives General AI a C+ in Accounting

Word on the street is that people are using AI to help them file their taxes. Before you hand over your financial life to a chatbot, press pause. AI wasn’t built to file your taxes, although a survey by Adobe noted about 25% of US workers say they plan to use AI to file their taxes. How you use AI could mean the difference between a clean return and a run-in with the IRS. CPAs and accountants are warning people that using Claude or other AI tools can lead to costly mistakes.

In fact, a recent survey by DualEntry tested some of the most popular AI models (19 in all) on various accounting workflows and found that at best they are 77.3% accurate. This means that the big general AI models are not very good at accounting.

Granted there are several software startups that offer AI services for tax preparers. But even these put limits around what the AI is allowed to do and warn it can be dangerous. Tax returns contain a lot of numbers, and the IRS doesn’t have much tolerance for errors. In the words of Dave Haase, founder of Juno, a tax software startup. “If you have a 99% accuracy rate,” he says, “you have a mistake on every tax return.”

The best course of action is for taxpayers to work with an accountant or CPA who can utilize A1 tools to automate complex tasks but still have human oversight. A good theme for this is AI won’t replace accountants but an accountant who uses AI will lead the future. Regardless of the industry, AI will affect most workplaces. We need to consider it as a tool in the hands of a skilled accountant, versus a quick fix for the public. If you need help with taxes or have questions based on your use of AI in filing you taxes, contact us at (312) 578-9300 or info@madonia.com.