Artificial Intelligence (AI) is changing how we work, search, and manage everyday tasks. From chatbots answering customer service questions to tools that summarize articles or suggest tax strategies, AI is starting to look like a one-stop shop for business help.
But when it comes to your company’s financial future? Relying too heavily on AI could create more problems than it solves.
Yes, AI Has Its Place…
There’s no denying that AI can be helpful. It’s fast, always available, and capable of sorting through huge amounts of data in seconds. Business owners can use it to:
- Research basic financial concepts
- Review summaries of tax-related topics
- Brainstorm ways to improve processes
- Create drafts for emails, reports, or planning documents
…But It Doesn’t Know You
Here’s the catch: AI is great with generalities, but not specifics. It can’t evaluate your current financials, assess market conditions, or understand your business goals. It won’t ask the right follow-up questions or flag risks based on how your operations are structured.
Where AI Falls Short for Business Owners
Business owners can quickly get burned by relying on AI-generated answers without checking them against expert advice. Some of the biggest red flags include:
- Inaccurate tax guidance: AI doesn’t have access to your latest return, your deductions, or local laws. Taking its advice blindly can lead to penalties or audits.
- Wrong business entity suggestions: Choosing the wrong structure could cost you thousands in taxes over time.
- Misjudging cash flow needs: AI can’t see your staffing plans, new contracts, or equipment purchases.
- Overlooking compliance risks: A missed filing deadline or misclassified employee can quickly lead to fines.
- Oversimplifying complex issues: Selling part of your business? Setting up retirement plans? These moves require tailored analysis, not broad advice.
Why a Trusted Advisor Still Matters
What AI doesn’t offer is human insight. It can’t sit down with you, look at your goals, and help you map out a plan that works for your business. It doesn’t understand the nuances of your industry, or the ripple effect that one small decision can have across your entire company.
At Bailey Scarano, we combine experience, strategy, and a deep understanding of what business owners really need. Whether you’re growing quickly or trying to solve a thorny tax issue, our team provides guidance you can trust, built on real data, not general guesses.
Let AI help you gather ideas, but let a seasoned accountant help you make the right decisions.