AI Tools Struggle to Provide Accurate Tax Advice for Irish Sole Traders
A recent study by the Center for Journalism and Research (CJR) has raised concerns about using artificial intelligence for financial guidance. The study tested two popular AI chatbots, ChatGPT Search and Perplexity, to see how well they could answer complex questions regarding Irish tax laws.
Researchers asked the AI tools 200 questions specifically related to the needs of Irish sole traders. The results showed that both platforms struggled to provide reliable information. ChatGPT Search performed poorly, giving incorrect answers to 67% of the queries. Perplexity performed better, but still provided wrong information in 37% of cases.
These findings are significant for the growing number of self-employed people in Ireland who may be looking for quick answers to tax-related questions. Experts warn that because tax regulations are specific to each country, AI models often mix up international rules with Irish legislation, leading to dangerous errors.
For Irish business owners, the message from this study is clear: AI chatbots should not be used as a replacement for professional advice. Relying on incorrect information could lead to serious issues with the Revenue Commissioners, including fines or incorrect tax filings.
If you are a sole trader in Ireland, it is recommended to use official government resources, such as the Revenue website, or to consult with a qualified accountant. While AI technology is advancing quickly, it is not yet accurate enough to handle sensitive financial and legal matters.