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Why Your AP & Tax Department's Usage of AI Needs Guardrails: KPMG Joins Deloitte In Making Significant AI Errors

Artificial intelligence is changing how Accounts Payable and Tax Departments manage vendor on-boarding, W-9 collection, TIN validation, payment classification, backup withholding, and Forms 1099 reporting. Organizations already use AI tools inside ERP systems, AP automation platforms, OCR solutions, procurement workflows, and vendor management systems. However, many AP and Tax Departments struggle to determine where AI improves compliance, versus where AI creates additional legal and operational risk. That's because using AI is a far from simple task. Even tax experts are making costly AI errors. 

On June 12, 2026 The Financial Times reported that a KPMG report on how AI is being used by businesses across the world exaggerated adoption of the technology. The KPMG report even featured fake case studies that appear to have been based on AI hallucinations. This follows on Deloitte's own AI mistakes last fall. Deloitte was forced to repay hundreds of thousands of dollars to the Australian government after a report it prepared was discovered to contain AI-generated fabrications, including nonexistent academic papers and a made-up quote from a Federal Court judgment.

As shown by those examples, the biggest problem today is that many organizations assume AI can independently determine whether payments require Forms 1099 reporting or whether vendor records satisfy IRS requirements. That assumption creates substantial compliance risk. AI can improve efficiency, consistency, workflow visibility, and error detection, but AI cannot replace professional tax judgment. We stand ready to help. 

Our upcoming webinar explains exactly where AI helps Accounts Payable and Tax Departments improve operations, and where organizations must preserve human oversight. Participants will learn how to: 

  • Use AI to strengthen vendor on-boarding:
  • Use AI to identify reporting issues earlier;
  • Use AI to improve year-end filing accuracy;
  • Use AI to reduce correction filings, monitor backup withholding obligations, and improve reconciliation procedures.

The webinar also explains the most common AI-related failures occurring in AP and Tax environments today. These include:

  • Over-reliance on automated classifications;
  • Failure to review low-confidence OCR results;
  • Improper attorney reporting:
  • Disregarded entity mistakes;
  • Duplicate vendor creation, and incorrect settlement payment treatment.

Participants will leave this program with practical procedures they can implement immediately inside their AP and Tax workflows, and empowered with the knowledge to make it easier to do your job. Choose the live airing (or schedule the download to learn at your convenience) at the following registration page:

https://register.gotowebinar.com/register/8201405021791587420