Dext, a London-based FinTech specialising in accounting automation, bookkeeping efficiency and data capture, has warned that UK businesses are losing money after relying on general-purpose AI tools for financial, tax and bookkeeping advice.
Dext commissioned a survey of 500 accountants and bookkeepers across the UK, revealing that half are aware of businesses that have already suffered direct financial losses after acting on incorrect or misleading AI-generated advice. These losses include overpayments, missed allowances, fines, penalties and wider compliance issues.
The findings found that 77% of respondents have seen an increase in clients using public AI tools for financial, tax and bookkeeping advice. Additionally, 72% have seen a rise in clients using AI–generated outputs to question or challenge professional advice.
Accountants report frequent errors stemming from incorrect interpretations of expenses, VAT mistakes, payroll inaccuracies and flawed tax planning.
The impact extends beyond direct losses. Nearly all accountants encountering AI-related errors say they now spend additional time correcting mistakes, with two fifths estimating they spend between four and ten hours each month undoing the damage. This hidden cost is increasing bills for clients and diverting professionals from higher-value advisory work.
Looking ahead, respondents warned that continued reliance on unregulated AI tools could result in higher insolvency risks, increased HMRC scrutiny and greater misuse of AI outputs to justify inappropriate or fraudulent claims. As a result, more than nine in ten accountants believe public AI tools should face regulation or restrictions when providing financial or tax-related advice.
Dext VP accounting product strategy Paul Lodder said, “The damage is no longer hypothetical,” said Paul Lodder, VP accounting product strategy at Dext. “Businesses are already losing money, and accountants are spending valuable time correcting avoidable mistakes, from VAT and payroll errors to misinterpretation of expenses.
“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.”
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