SMSF advisers and accountants should be cautious about using artificial intelligence (AI) tools such as ChatGPT due to its inability to access up-to-date information or interpret it correctly.
SMSF Alliance principal David Busoli said while there is an increasing level of media coverage regarding the use of ChatGPT in business processes, leading some advice practitioners to consider experimenting with the new technology, caution should be exercised in applying the results.
“The free version is only trained on information predating September 2021. This means any updates to legislation or tax codes since then will not be reflected in its outputs,” Busoli said in an update to clients.
“Even if you’re using the paid version, it can hallucinate. That means it can produce bold, confident answers that are totally incorrect, so don’t trust it – you will need to use your judgment.”
He noted the software lacked any ability to distinguish between information and its output was not checked for accuracy or reliability.
“ChatGPT learns from, and is trained on, all information inputs. In short, it memorises everything you enter into the system, so don’t provide confidential details like tax file and bank account numbers. The tool doesn’t differentiate between private and general information,” he said.
“The application seems incredibly smart, but it can’t do everything. Ultimately, you are responsible for your own work. If there’s a mistake, no computer is going to step in and take the blame. That’s on you, so check everything carefully.”
While the Australian Securities and Investments Commission (ASIC) has yet to provide an official position on the use of AI and ChatGPT in the provision of financial services and financial advice, ASIC chair Joe Longo recently noted the government was seeking input on how to regulate AI.
Speaking at industry conference in June, Longo said the corporate regulator was watching how this technology was adopted.
“There is a very real danger here that entities may rush too quickly into innovations without applying appropriate controls and proper governance,” he said.
“Just because the technology has changed, nobody should think that means your existing obligations around good governance have changed with it.
“I want to take this opportunity … to emphasise that ASIC has AI as a high and important priority, not just in regards to wholesale markets, but also its role in – and for – the whole economy, including consumers and small business.”
