Why Companies May Be Liable for AI Errors
Fast Company, Saturday, October 17th, 2026
Two CPAs explain why responsibility for AI mistakes falls on the professionals and businesses that rely on the output.
With surveys showing that most professionals now use AI weekly, the authors warn that AI can produce polished but wrong information, and that liability rests with the user rather than the AI developer.
They examine Clinco v. Commissioner, a U.S. Tax Court case in which an attorney submitted a brief with allegedly fabricated citations.
The case illustrates how AI errors have led to lawsuits, court fines and reputational damage.
The article asks how professionals can benefit from AI without outsourcing the judgment their work requires, and it urges verification of AI output.