AI Can Be Helpful, But It Still Needs a Human Eye
Artificial intelligence, or AI, is popping up everywhere at the moment. From writing emails to summarising long documents, researching topics, building checklists and helping people organise their thoughts, it can be a handy tool when used properly.
Recently, one of our team completed professional development on using AI productively in tax and accounting work. It was a good reminder that while AI can save time, it is not something to blindly rely on.
Like most tools, it works best when you know what it can do, what it can’t do, and where the risks sit.
Here are a few simple things worth keeping in mind.
1. AI is only as good as the instructions you give it
A lot of people open tools like ChatGPT, ask a broad question, and expect the perfect answer straight away.
In reality, AI usually works better when you give it clear instructions.
Instead of asking:
“What do I need to know about tax planning?”
You might ask:
“Explain the key things a small business owner should think about before 30 June, using simple language, bullet points, and a short checklist at the end.”
That second version gives the AI more direction. It explains who the information is for, the topic, the tone, and the format you want.
The clearer the question, the more useful the answer is likely to be.
2. Ask for the format you want
AI often gives answers in long paragraphs, which can be hard to read.
You can ask it to put information into a format that suits what you need, such as:
- a checklist
- a table
- bullet points
- a step-by-step guide
- a short email draft
- a summary for a client or team member
This can be useful if you are trying to organise information quickly, especially when you are busy and just need a starting point.
3. Don’t treat the first answer as the final answer
The first response you get from AI is not always the best one.
You can ask follow-up questions, tighten the wording, ask for a simpler explanation, or tell it what it has missed.
For example:
“Can you make this shorter and easier to understand?”
“Can you turn this into a checklist?”
“Can you explain this for a farming business?”
“Can you remove the jargon?”
It is a bit like asking someone to draft something for you. The first version might be helpful, but it still needs review, editing and common sense.
4. Always check the facts
This is the big one.
AI tools can make mistakes. They can also make things sound very confident, even when the information is not quite right.
They may refer to old rules, provide links that do not work, or summarise something in a way that misses important details.
So, if you are using AI for anything technical, legal, tax-related, financial or business-critical, always check the information against a reliable source.
For tax matters, that might mean checking the ATO, ASIC, legislation, or speaking with your accountant before making a decision.
AI can help you get started, but it should not be the final say.
5. Be careful with private information
It is not a good idea to upload confidential client documents, legal papers, financial records or personal information into public AI tools.
That includes things like:
- tax returns
- business financials
- trust deeds
- contracts
- bank statements
- client details
- employee information
Once information is entered into an AI tool, you need to be very clear on where that data goes, how it is stored, and who may be able to access it.
When in doubt, leave private information out.
6. Use AI as a helper, not the decision-maker
AI can be useful for getting ideas, summarising general information, drafting simple content, or helping you organise your thoughts.
But it does not know your business like you do.
It does not understand your family situation, your cash flow, your farm structure, your succession plans, your staff, your risks, or your long-term goals unless that information is safely and properly considered.
That is why professional judgement still matters.
AI might help prepare the first draft, but people still need to make the final call.
A practical way to use AI
For everyday use, AI can be helpful for things like:
- drafting a polite email
- summarising a long article
- turning notes into a checklist
- brainstorming questions before a meeting
- explaining a general topic in plain English
- organising ideas before speaking with an adviser
Used this way, it can save time and help you feel more prepared.
But for anything that affects your tax, business structure, employees, compliance or financial position, it is worth getting proper advice.
Final thoughts
AI is not something to be scared of, but it is something to use carefully.
The main thing is to keep your judgement switched on.
Ask clear questions, check the answers, protect private information, and do not rely on AI alone for important decisions.
It can be a helpful tool in the toolbox, but it is not a replacement for proper advice.
If you are unsure about something affecting your business, tax or planning, please get in touch with the Smith Shearer team. We are here to help you work through it properly.
