You can’t scroll social media or open a business newsletter these days without seeing something about the latest and greatest AI tool – or a warning about AI gone wrong.
We see it too. In fact, AI-related sessions in bookkeeping webinars and conferences are growing rapidly, and they’re consistently among the best attended sessions compared to more “traditional” bookkeeping content (personal observation only, we didn’t run a formal study).
That tells us two things: 1. People are curious, and 2. People are cautious. So where do we land?
We’re cautiously optimistic about AI in the bookkeeping and accounting space – emphasis on cautiously. Here’s why.
Why we’re cautiously optimistic about AI
1. Data safety and security
You’ve probably seen the warning everywhere: “Be careful what information you share with AI.” That advice matters even more in accounting and bookkeeping, where we handle sensitive and confidential information every day.
We are very deliberate about:
- Which AI tools do we use
- What information is shared
- Which tasks AI is (and is not) used for
Our general recommendations:
- Turn off any “improve the tool for everyone” or data training‑ options where available
- Enable 2FA and other available security controls
- Scrub reports of identifying or confidential information before asking an AI tool for input
AI can be powerful—but only if it’s used responsibly.
2. Hallucinations (confidently wrong answers)
Many people now turn to AI tools for advice. For low-risk tasks like asking what to make for dinner based on what’s in your fridge, the downside of a wrong answer is small. Worst case? You substitute an ingredient, or no one loves the meal.
But the risk level changes dramatically when you’re asking about:
- Payroll or HR matters
- Tax forms and filings
- CRA reporting (or any tax authority)
Tools like ChatGPT are known to hallucinate – that is, confidently provide answers that are simply not true. Asking the AI for its sources isn’t enough; those sources can be fabricated too.
You can reduce this risk by prompting the tool to only reference authoritative sources (such as the CRA website or the Income Tax Act), but you still need to verify the information yourself.
In short: AI is a starting point, not a final authority.
3. Built-in‑ biases
AI tools are trained on large volumes of human-generated content, which means they often reflect real-world biases.
This is especially noticeable in image generation. Try asking your favourite image tool for a photorealistic scene of a “successful, busy accounting professional meeting with a business owner client” and see what shows up.
When I tried this, the image didn’t look like me (at all) – and the client may or may not have been missing a finger. Hard to say. For the curious, I’ll include the image at the end of this blog.
Bias shows up in text, too. While we work with many trades and service businesses, not all of our clients are in those industries. When using AI for marketing or communications, we often need to remind the tool that our audience is broader than one sector.
How we’re using AI (and why we’re excited about it)
Despite the cautions, there are areas where AI has been genuinely helpful – and we’re excited about the value it’s creating for clients.
1. Karve Client Support Chatbot
We’ve built a client support chatbot using our 45-page client manual and additional “how‑ to‑” guides. The goal was to give clients a way to get answers outside regular Karve office hours for questions like:
- How to invoice
- How to upload items to Dext
- How to locate archived items in Dext
Important limitations:
- It was built in ChatGPT and requires a ChatGPT account (the free version is sufficient)
- It only answers questions based on our source materials
- If you ask something outside its scope, it will direct you to email your bookkeeper and offer to help you draft that email
👉 Access the Karve Support Chatbot here:
https://chatgpt.com/g/g-68f15f50f568819195a91e4132224f0c-karve-support-assistant
2. Karve Payroll Pilot
We’ve also launched Karve Payroll Pilot, our payroll analytics dashboard.
Payroll is often one of the largest cash flow pressures in a business. It impacts cash at least twice a month (paydays) and again the following month when source deductions are remitted to the CRA.
Payroll Pilot:
- Displays payroll data alongside sales for the same pay period
- Projects payroll costs moving forward
- Provides a clear, visual snapshot to support better cash‑flow decisions
The tool was built in Replit, with assistance from ChatGPT for coding support and contextual problem-solving.
🎥 Watch the walkthrough demo here:
https://www.loom.com/share/ec7bc7eadd8c4160bc584308d828fc32
We still have a limited number of beta spots available at an introductory price (Karve Payroll clients only). Please email your bookkeeper to reserve a spot.
3. AI enhancements in our software toolbox
AI is also showing up in the tools we already use every day:
QuickBooks Online
QuickBooks continues to roll out AI features. We’re watching closely to see how future agent enhancements might complement tools like Payroll Pilot – particularly since payroll-to‑sales analytics don’t yet appear to be on their roadmap.
Dext
Our document capture and management system keeps getting better. We love how it extracts invoice data and connects seamlessly with QuickBooks, saving time and reducing manual entry errors.
Karbon
Our workflow, client communication, and CRM platform. When you check off tasks in your checklist, we’re notified that items are ready for review. (Yes, it sends a lot of reminders – sorry about that. The best way to reduce them is to check items off as soon as they’re complete!)
The bottom line
AI isn’t replacing bookkeepers – but it is changing how work gets done. Used thoughtfully, it can reduce friction, improve visibility, and create better client experiences. Used carelessly, it can create risk.
Our approach is simple: move forward with curiosity, apply healthy scepticism, and always keep people – not tools – at the centre of the work.
As promised, here is the image from the prompt above…
February 2nd, 2026