Canadians are navigating the gray area of concealing the use of AI tools to improve performance at work – security and accuracy risks when using public AI in personal finances and tax returns
Canadians are open to embracing artificial intelligence (AI) in their homes, jobs, finances and even relationships, but many are taking risks by entering sensitive financial and personal information into open or public AI tools, a new H&R Block Canada study finds.
In addition to using AI for work and personal finances, many Canadians (especially younger Canadians) are open to incorporating future AI innovations into many aspects of their lives. From robot AI dog walkers, housekeepers, financial advisors to romantic partners. However, many Canadians do not consider the risks and limitations that open AI tools have when it comes to managing personal finances and assisting with tax payments. H&R Block’s research examines Canadian sentiment and the use of AI in the workplace and financial management, as well as the futuristic innovations Canadians will embrace.
Risks of using AI to assist with tax payments. AI continues to transform every part of our lives, but there are risks and limitations to using free, open or public AI systems like ChatGPT, Google Gemini, and Microsoft Copilot when filing your taxes. Open AI tools struggle to incorporate the ever-evolving deductions, credits, and benefits available to Canadians based on their specific life circumstances, and can generate responses that contain false, outdated, or misleading information presented as fact (known as illusions).
Also read: AiThority Interview with Glenn Jocher, Ultralytics Founder and CEO
“Unlike closed enterprise AI tools, which are deployed on a company’s systems for use only by clients and whose data is not shared externally, open AI tools come with both risks and significant limitations when it comes to inputting personal financial information and assisting with tax payments,” said Yannick Lemay, tax expert at H&R Block. “Public AI platforms are not trained on the ever-evolving changes to the hundreds of tax credits and benefits available to them, and the reality is that each Canadian’s tax situation is unique based on many considerations that AI tools are unaware of. As a result, Canadians may receive inaccurate tax advice, miss out on benefits to which they are entitled, or be subject to Canada Revenue Agency reviews and even penalties.”
Canadians have different opinions and security realities about using open AI tools for personal finance. Nearly one in 10 (9%) Canadians report they have used an AI tool to help manage their finances or pay their taxes. Approximately 21% of Canadians say they have never used an AI tool to manage their finances, but are comfortable using one, while 56% say they are not comfortable, and some Canadians are unsure whether they have used an AI tool to manage their finances.
The open AI system itself cautions against entering sensitive financial details and points out limitations for tax filing. Data is not shared outside of closed enterprise AI tools that are implemented on a company’s systems for use only by customers, but this is not the case with open AI tools that are free or publicly available. Subscription or paid AI tools are often closed, so the data entered is not shared publicly. However, there are also some paid AI tools that use open systems. When asked about considerations when using public AI platforms for personal finance and tax return advice, ChatGPT shared its own perspective.
ChatGPT states that “public or general-purpose AI tools should not be treated as safe places to enter personal financial information for tax advice.” “Canadians should be careful about using open AI tools for tax filing purposes, as the information provided may not be accurate, up-to-date, or appropriate to their particular circumstances. These tools may make mistakes or relay outdated information.”
Canadians have a strong reaction to security concerns when they learn about the differences between open and closed AI tools. Overall, 82% of Canadians said they would not feel comfortable entering personal or financial information into open AI tools to help manage their finances when learning about the differences between open and closed AI systems. Furthermore, 90% report that they are concerned about the security implications of entering sensitive financial information, such as salary, personal status, and spending details, into open AI tools that assist with tax filing. About 40% said they had never thought about the risks of entering sensitive financial information into open AI tools such as ChatGPT, Google Gemini, and Microsoft Copilot.
One in five Canadians is willing to gamble at the risk of entering sensitive financial information into open AI tools. Despite 90% of Canadians being concerned about the security implications of entering sensitive financial information into open AI tools, one in five Canadians (20%) feel it’s worth the risk to get AI support and advice, and 17% say it’s worth it because of the convenience of using AI tools to manage their finances. Furthermore, 19% say they are not concerned about entering their personal or financial information because they think it will get lost in the vast amount of data collected by AI tools.
When you open an AI tool, you risk missing out on changes to tax credits and benefits this tax season. H&R Block Canada notes multiple provincial and federal tax changes that will impact this tax filing season, but untrained open AI tools may not accurately reflect these changes. For example, Canada’s carbon rebate ended on April 1, 2025, but open AI models may not recognize that people who haven’t filed a tax return since 2024 must do so by October 30, 2026. Otherwise, you will lose your tax return forever. Other changes include a reduction in the minimum federal tax rate from 15% to 14% starting July 1, 2025, but AI tools may not be able to handle the mid-year transition. Other tax-related changes where untrained open AI tools are at risk of hallucinations include: Changes to the GST/HST new home rebate will allow eligible first-time buyers to receive a 100% GST rebate on new homes worth up to $1 million. Canada Groceries and Essential Benefits (officially known as GST and HST credits). Canada Child Care Benefit, Disability Tax Credit, Canada Worker Benefit, and more.
How Canadians are using AI at work and their perceptions of AI bias. Research shows that nearly four in 10 working Canadians (39%) use AI tools to assist in their daily work, and some feel the need to hide them from colleagues and superiors. 90% of AI users believe that using AI to assist in their work is fair game, but believe there is a bias against using AI.
- Nearly one-third (32%) of Canadian workers using AI are unsure how acceptable it is to use AI to support their work.
- A quarter (25%) don’t want their colleagues or bosses to know they’re using AI tools at work.
- Nearly one in five (19%) feel that using AI tools at work is cheating, even though they use them themselves.
- Among people who use AI at work, four in 10 (40%) are upset when colleagues are praised for the work they’ve done using AI tools.
- Almost one in four (23%) believe that their colleagues and bosses will judge that they are using AI at work.
- Almost a third (32%) feel they need to hide or be cautious about using AI at work.
Efficiency and job improvement are key motivations for using AI tools at work. Among Canadians who reported using AI tools in their daily work, 86% said that using AI reduces the time it takes them to perform certain tasks and improves their work efficiency. Additionally, 81% say AI will improve their daily work performance, and 77% say AI will help improve the quality of their work.
Canadians are open to future AI innovations that bring love, friendship, and practical everyday support. When it comes to future advancements in AI, Canadians are open to a wide variety of combinations of uses, but their primary focus is on AI housekeepers, personal assistants, and AI solutions that assist with real-life tasks, including life hacks such as:
- AI robot housekeeper (41%): Help with household chores such as washing dishes, loading the dishwasher, mopping the floor, and cleaning the bathroom.
- AI personal assistant (34%): It helps with tasks such as email management, time organization, office work, meeting notes, and work advice. Interests vary widely by age group. Ages 18-34 (50%). Ages 35-54 (41%). Age 55 and older (19%).
- AI Personal Financial Planner (33%): We can help you manage your budget and advise you on how to spend and save money. Interest is highest among 18-34 year olds (42%). This was followed by those aged 35 to 54 (41%) and those aged 55 and over (22%).
- Robot AI’s best friend (More than 1 in 10 Canadians say 12%: As a companion to provide support and personal advice. This increases to 17% for those aged 18-34, but 13% for those aged 35-54 and 8% for Canadians aged 55 and over.
- AI robot dog or pet (1 in 10 Canadians, 10%: Among Canadians aged 18 to 34, the figure was 16%, 13% among those aged 35 to 54, and 5% among Canadians aged 55 and over.
- AI robot dog walker (12%): 20% of Canadians aged 18 to 34, 13% of those aged 35 to 54, and 5% of Canadians aged 55 and over.
- An AI romantic partner or lover (more than 1 in 10 (12%) Canadians aged 18-34)): Who would be open to an AI romantic partner? compared to 7% of all Canadians.
Also read: The infrastructure war behind the AI boom
[To share your insights with us, please write to psen@itechseries.com]
