Transcription
Okay, we're going to be talking about a very hot topic right now, which is about AI. There's so many different AI platforms right now. There's CAD DBG, there's Claude, there's Gron, there's the Google version. But anyways, it seems like every single company is trying to capitalize on AI. And if you go to every website, it seems like every website has its own version of AI on its website. And there's even some people out there who say that AI is going to replace accountants. So in a few years from now, there's not going to be any more accountants and everything that's taxes, bookkeeping is all going to be done by AI.
So let's start from the beginning. Okay. I remember when did Tad DBD first come out? I believe Tad DBD first came out in 2022. Yes, I was correct. Tad DBT was initially released in November 30th, 2022. And I remember prior to this, if you had a business and you wanted to, you know, have weekly newsletters or monthly newsletters, you either a had to pay somebody to do it for you or you had to pay it yourself. But I remember starting in 2022, you started hearing about AI generated content online and it seemed like everybody was racing to use AI to write their content. And what I remember was quickly everybody's content started to sound the same because it was all AI generated.
Then shortly after that, that's when you start to hear of competition like Gro. Oh, Grock. Sorry, it's Grock AI. I don't really use Grock, but let's see who owns Grock. Yeah, I think so. Grock was founded by X AI, which is owned by Elon Musk. So I'm correct. I think Grunk is owned by Elon Musk. And then we start seeing Google having their own version of AI and then after that it seemed like every single website was releasing their own version of their own AI on the website. And in the accounting world there was a lot of fear that came out during this time. People were saying accountants are going to be replaced. Everybody is going to use AI to do their taxes in a few years. They're going to be using AI to do their bookkeeping.
And so what I did was I'm the kind of person who likes to study and learn. So this is when I started to play around with chat GPG. And first what I would do was I would use it for my social media content. I would have it write out the topics for my social media content. So then what I would do is I actually tried to have it write my newsletter for me, but I didn't like it because it didn't really sound like me. So that's why I like to use my own original thought content. And then you started hearing about companies coming out that actually was using AI for accounting and bookkeeping. For example, let's see if I could find that company. Yes. So as you can see here there is a company called accounting. I see this a lot like I have a a lot of prospective clients who try to DIY approach. It also started with a Turbo tax. They would try to file their own taxes. But when I took a look at their taxes that they filed, I'm able to see a lot of errors that they have missed on filing their tax returns.
And same thing when it comes to using AI. My experience in using AI is that a lot of it is correct, but also AI still gets confused by the tax code and tax law. And some of the things that the AI generates is wrong. So what I find out is you need to know what you're looking at. You need to be a expert in tax and accounting to know what AI is saying is right and what it's saying is wrong. For example, I remember one time I was researching something about short-term rentals and it said that short-term rentals is depreciated over 27 and a half years, which is wrong. Obviously, short-term rentals is depreciated over 39 years. So things like that. If you don't know that, then you're just going to take the AI toward. So that's how you need to know what you're doing.
Also, when it comes to AI doing the bookkeeping for you, yeah, I'm sure AI can categorize expenses for you in QuickBooks or whatever accounting system that you use. But AI is still not developed enough to go beyond that to know okay if it's a construction business how are you going to account for all the expenses that it incurred before the job is done if it's a house flipping business where does all the expenses to purchase a property to pay for labor materials and other costs where does that go before the property is sold a lot of times if you try to have AI try to categorize that for you it's going to categorize it incorrectly unless you know what you're doing and you've trained the AI to account for different situations correctly. So that's why I think that we should not be scared of AI. I'm actually embracing AI. I use AI all the time in my business. I use AI to research a lot of things and now I'm using Claude. And what's cool about Claude is that it can take control of your computer. You could tell Claude, "Hey Claude, I want you to research this. I want you to only use the software and I want you to cross reference it with articles on the iOS website to make sure that it's 100% correct. And then I want you to simplify this for me."
So AI is great when it comes to doing task for you. A few years ago we were taking you hours. Now you can just pay AI, you know, $100 per month for it subscription fees and it's going to do a lot of the lower level task for you. In the past you would have had to pay a onshore or an offshore staff member to do it for you. But with that said, just like what I said a few minutes ago, you still need to know what you are looking at because if you are not trained, then what's going to happen is that you are just going to follow whatever AI tells you. So I think that's very important and I think that's the reason why a lot of these pioneer companies that are starting to depend on AI heavily to do the bookkeeping for their clients. I think that's why they failed is because they don't know that you still need to know what you're doing before you fully trust AI and get the work out there to the client. You still need to know what you're looking at.
So, let alone if you are a regular Joe who doesn't have accounting experience. Yes, you could use AI to do the bookkeeping for you, file your taxes for you, but what are you going to do if you do it incorrectly? if AI does it incorrectly and then you have to amend the tax return or you get hit with penalties and interest because you did it incorrectly or should I say AI did it incorrectly right? So with that said, I think it's very important for us to understand that yes AI is a powerful tool, but there has to be a trained human overseeing the work of the AI to make sure that it's doing it correctly right?
So I'm going to be having a webinar about this which I'm going to go more into detail on the last in a month. I'm actually going to do more research on this because I find it interesting. Especially these two companies that tried to use AI for their bookkeeping but failed. I'm looking to study them more and learn more why exactly it fails. More importantly, if you're curious about cutting down your accounting and tax professional fees by using AI, I would highly recommend that you check out our webinar so that we can learn together and see how can you use AI more efficiently to help our businesses grow more, right? Because the whole purpose of this video is not to scare you from AI because I really think that AI is the way of the future.
I remember back in 2013, social media started to become popular around the same time that I started my accounting career. And I remember all of the firm owners and CPAs back then were scared to use social media. They said it's pointless. There's no clients on there. It's just negative attention. But fast forward to today in the 2020s, especially in 2026, most of our promotion and branding is in social media. So I think the same thing is going to happen when it comes to AI. I think that people that don't embrace AI is going to be left behind and the people who really take the time to learn AI and learn how to master is going to go to the next level with their business.
And another thing with AI that I want to touch on is that you have to be very careful when you're using AI because there's still a lot of security risk by using AI, right? So, for example, if you are a CBA and you're using AI to help you do client work, well, there's risk out there that the that client information could get out there because that AI might release that information, right? Because remember AI depends on remembering all the memory and information that you showed it previously. So that's why you need to have first of all don't use the free version of AI because that's the most basic and lowest level of programming and also it has the lowest security levels and number two is first of all you're using the business plan for tech DBT because that's a more secure version and also make sure that you're setting up the settings properly so that the settings is programmed in a way that the AI is not going to release the sensitive client information to the web Right.
And that's part of the reason why I've been playing with COD for the last couple of days and I'm very impressed with what you can do with Quad. You can have it do your research. The whole co-work feature where it can take control of your computer and do a lot of the work for you is super impressive. Even the remote feature of Cloud is amazing. That's when I can walk away from my computer and through my phone. I can give commands to my AI agent and have it do a lot of the work for me. But I think that it's still not secure yet to use it with client information. So that is why I'm still not allowing my staff to use claw yet through client work. So we need to wait first on those security for these AI tools is sufficient enough and secure enough so that we can start using it for our client work and make our work more efficient. So those are things that most people who don't study this who are not CPAs. So that's why you got to be very very careful when you are using AI.
Okay. So if you have any questions, feel free to reach out. Don't worry handles a lot.