Artificial intelligence tools are becoming increasingly popular for answering money-related questions. While these tools can be helpful for summarising information and helping you work out what to research next, convenience doesn’t equal accuracy. Tax and super rules can be detailed, exceptions matter, and the right answer often depends on your own circumstances. If you act on incorrect information, the consequences can be serious.
Where AI can be useful
Publicly available general-purpose AI tools can be handy for broad, educational questions such as:
- “How does compound interest work?”
- “What does capital gains tax mean in simple terms?”
- “What is salary sacrifice?”
- “What’s the difference between concessional and non-concessional super contributions?”
Used this way, AI can act as a starting point to help you understand terminology and prepare for conversations with your professional adviser.
Where extra caution’s needed
The situation changes when questions shift from general information to something that sounds like personal advice. Questions like “Can I claim this expense as a tax deduction?” or “How much should I put into super this year?” depend heavily on your individual circumstances, and AI tools aren’t the place to ask them.
There are several reasons AI-generated answers can go wrong. First, AI can simply be incorrect. The ATO specifically warns that you may receive false or inaccurate information from AI tools, even while the responses sound confident and reassuring.
Secondly, AI’s likely to miss important details that affect your specific situation. AI tools can’t understand your complete financial position, objectives or risk tolerance well enough to make decisions for you.
Thirdly, AI tools aren’t designed to provide regulated personal advice. Anyone providing personal financial advice must hold an Australian financial services licence, and providers giving tax advice services to retail clients for a fee must be registered with ASIC.
You should also consider privacy when using AI tools. It’s not usually possible to know how publicly available AI tools use the information you type into them, or who might see it in future, so avoid entering your Tax File Number, myGov sign-in details, bank account details, or copies of notices of assessment and identification documents into your query.
Using AI more safely
If you choose to use AI for money-related questions, treat it as a starting point for explanation rather than for decision-making. Always check answers against official sources like the ATO, ASIC’s Moneysmart website and advice from trusted, qualified professionals. Remember that AI can sound confident even when the information it gives you is incorrect.
Keep personal information out of your chat wherever possible, and consider using AI to prepare questions for your professional adviser rather than seeking direct recommendations from the tool itself.
If your question is, “Can I claim this?”, “Does this apply to me?” or “What’s the best option in my situation?”, it’s time to consult a qualified professional. Contact us for advice tailored to your needs and circumstances.
