Canadian businesses are already losing money after relying on general-purpose artificial intelligence tools such as ChatGPT for financial, bookkeeping, and tax advice — a problem accountants warn could escalate into business failures by 2026.
That is according to new research from Dext, which surveyed 500 accountants and bookkeepers across Canada. Half of respondents said they are aware of businesses that have suffered direct financial losses after acting on incorrect or misleading AI-generated advice, including overpayments, missed tax allowances, penalties, fines, and compliance issues.
The findings suggest public AI adoption is accelerating across Canadian businesses, but misuse of these tools for complex financial decisions is creating a growing and costly risk — one professionals expect to intensify as more firms treat AI outputs as reliable guidance.
“The damage is no longer hypothetical,” said Paul Lodder, vice-president of accounting product strategy at Dext. “Businesses are already losing money, and accountants are spending valuable time correcting avoidable mistakes, from tax 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.”
AI use rises as clients challenge professionals
Throughout 2025, 76 per cent of accountants and bookkeepers said they saw an increase in clients using public AI tools to seek financial, tax, or bookkeeping advice. At the same time, 70 per cent reported more clients using AI-generated outputs to question or challenge professional advice, while 68 per cent saw a rise in clients suggesting AI could replace the need for accounting services altogether.
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That growing reliance is already being accompanied by a sharp rise in errors. Only seven per cent of respondents said they had never encountered mistakes driven by public AI advice. Eleven per cent said they now see such mistakes daily, while 29 per cent encounter them weekly.
The most common issues include incorrect interpretations of business expenses, cited by 44 per cent of respondents, followed by incorrect tax claims or charges at 43 per cent. Other frequent problems include flawed personal tax planning, payroll errors, and incorrect business tax planning advice.
Hours lost fixing AI mistakes
Beyond direct financial losses, the research points to a mounting productivity drain on accounting firms — and higher costs for businesses.
Among those encountering AI-related errors, 44 per cent said they spend up to three hours per month fixing mistakes caused by AI-generated advice. Another 27 per cent spend between four and six hours, while 11 per cent spend as much as seven to 10 hours correcting errors.
2026 risks and calls for regulation
Looking ahead, accountants expect the risks to intensify if businesses continue relying on public AI tools without professional oversight. More than a quarter warned of a higher risk of insolvency or business failure by 2026. Others pointed to increased misuse of AI outputs to justify inappropriate or fraudulent claims, rising fines and penalties, and greater scrutiny from the Canada Revenue Agency due to incorrect or late filings.
With concerns mounting, calls for intervention are growing. Ninety-four per cent of respondents said regulation or restriction is needed, with two-fifths supporting limits on public AI tools providing financial or tax-related advice, and nearly two-thirds calling for formal regulation.
“If we head into 2026 with more businesses treating AI outputs as trusted tax and financial advice, without professional oversight, the consequences could be severe,” Lodder said. “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.”
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