Paul Wittich, General Manager APAC at Dext, highlighted the gravity of the situation, stating, "The damage is no longer hypothetical. Across the country, businesses are already losing money, and accountants and bookkeepers are spending valuable time correcting avoidable mistakes, from tax and payroll errors to misinterpretation of expenses." Wittich further emphasised, "AI has a powerful role to play in finance but there’s a fundamental difference between specialist tools built for accounting and bookkeeping, and general-purpose chatbots that don’t know a business’s true financial context."

The report suggests that public AI adoption is rapidly increasing across Australia. However, the misuse of these tools for complex financial decisions is creating a growing and costly risk. Accountants and bookkeepers fear that this risk will intensify as more firms begin to treat AI outputs as reliable guidance.

AI reliance surges as clients challenge professional advice

Throughout 2025, a staggering 75% of accountants and bookkeepers reported an increase in clients using public AI tools to seek financial, tax, or bookkeeping advice. This growing reliance has been accompanied by a sharp rise in errors, with the consequences already manifesting in client finances. According to the research, accountants and bookkeepers are now encountering client mistakes on a regular basis due to incorrect or misleading public AI-generated financial or tax advice. A significant 17% report encountering client mistakes daily, while 44% see errors every week. Only 2% of respondents claim they have never encountered public AI-driven mistakes.

The most common errors reported include incorrect interpretation of business expenses (45%), incorrect tax claims or charges (43%), flawed personal tax planning (39%), incorrect business tax planning (38%), and payroll errors (29%).

The hidden cost: hours wasted fixing AI mistakes

Beyond direct financial losses, the research highlights a growing productivity drain on the accounting and bookkeeping professions, as well as unnecessary hours billed to businesses. Among those encountering public AI-related mistakes, 52% spend up to three hours per month correcting errors caused by AI-generated advice, 38% spend between four to six hours, and 8% spend seven to ten hours fixing errors.

2026 warning: insolvency risk, fraud, penalties, and ATO scrutiny

Looking ahead, accountants and bookkeepers expect the risks to intensify if Australians continue relying on public AI tools without professional oversight. A quarter (28%) warn of a higher risk of insolvency or business failure, while others expect increased misuse of AI outputs to justify inappropriate or fraudulent claims (41%), rising fines and penalties (38%), and greater ATO scrutiny due to incorrect or late filings (34%). Two-fifths (41%) believe businesses making decisions based on false confidence from incorrect AI outputs will become more common.

Calls for regulatory clampdown

With concerns mounting, accountants and bookkeepers are advocating for urgent intervention. The vast majority (92%) believe regulation and restriction are needed. Nearly half (48%) think public AI tools should be restricted when providing financial or tax-related advice, and 69% are specifically calling for formal regulation.

Wittich added, "If we head into this financial year with more businesses treating general-purpose AI outputs as trusted tax and financial advice, without professional oversight, the consequences could be severe. The focus now should be on responsible guardrails, clearer restrictions around financial advice, and better education for businesses on what these tools can and cannot safely be used for."

As the financial landscape continues to evolve with the integration of AI, the call for a balanced approach—leveraging the potential of AI while ensuring accuracy and compliance through professional oversight—becomes increasingly crucial.