In a recent Upper Tribunal case (HMRC v Marc Gunnarsson), a taxpayer represented himself and used Artificial Intelligence (AI) software to prepare his legal arguments.

The Tribunal found that his Self-Employment Income Support Scheme (SEISS) claims were incorrect, and he had to repay the money he received. To support his case, he cited three previous Tribunal decisions, but it turned out those cases didn’t exist. They had been “hallucinated” by the AI tool.

This highlights a growing risk: while AI can be useful, it can also produce information that looks convincing but is completely wrong. If that information is relied on in legal or tax matters, it could cause serious problems.

The key lesson: AI can help with drafting and research, but when it comes to tax advice, always confirm details with a qualified professional.