Compliance
PI insurance and AI: are you liable for AI tax advice in Australia?
If you are a registered tax agent using AI, the professional responsibility for the advice stays with you — it does not transfer to the AI or the software vendor. The TPB Code of Professional Conduct applies regardless of the tools you use. The practical implication: verify every AI output before relying on it, and keep evidence that you did. This is general information, not legal or insurance advice — check your own PI policy and obligations.
Liability does not move to the tool
It is tempting to assume that if an AI produced the answer, the AI (or its vendor) carries the risk. That is not how professional responsibility works. The TPB has been explicit in its 2026 draft guidance: using AI does not reduce or transfer a practitioner's responsibilities under the Code of Professional Conduct — you remain accountable for the advice you give.
So the question is not "is the AI liable?" — it is "can I show I met my professional obligations while using it?"
What that means in practice
Treat AI output the way you would treat a junior's draft: useful, but yours to check and stand behind. In practice that means:
- Verify every figure and citation against authoritative sources before relying on it.
- Keep a record that you reviewed the output — an evidence trail, not just a memory.
- Be clear with clients about the general-information nature of automated output where it matters.
- Know what your professional indemnity policy says about AI-assisted work — ask your insurer if it is unclear.
How the right tooling helps your position
Tools that label AI output as general information, cite their sources, and log your verification make your position more defensible — because they produce the evidence trail almost automatically. Advisory Stack is built this way: outputs are grounded in ATO sources, and a verify-before-you-advise acknowledgement is recorded and exportable if your insurer or the TPB asks.
None of that removes your responsibility — it helps you demonstrate that you met it.
The bottom line
AI can make you faster and better, but it cannot carry your professional liability. Verify everything, keep the evidence, understand your PI cover, and choose tools that make all of that easy. This article is general information for practitioners — not legal, tax or insurance advice for your specific circumstances.
Authoritative sources
This article is general information for registered practitioners, not personal tax advice. Advisory Stack is a technology platform used by registered tax agents; the registered practitioner remains the adviser of record and is responsible for verifying any output before relying on it.
Related guides
See it in your practice
Advisory Stack is in invite-only pilot for Australian TPB-registered tax and BAS agents. Apply to join the beta — free during the pilot.
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