Do I need to tell clients I use AI?
Clients increasingly ask how their data is used. A clear, simple answer builds trust.
- Do we have to disclose AI use?
- What should our engagement letter say?
- Will clients be worried?
Be open about it. Canada's privacy regulator advises openness when generative AI is used with personal information, and clients increasingly ask. Update your privacy policy and engagement letter to explain which tools you use, for what and how data is protected. Tell people when they're talking to an AI assistant and ask before recording meetings.
Where to disclose
| Where | What to say |
|---|---|
| Privacy policy | Categories of AI tools, purposes, safeguards |
| Engagement letter | AI may support work; CPAs review and remain responsible |
| AI assistant | "You're talking with an automated assistant" |
| Recorded meetings | Consent at the start, retention period |
Keep it simple
Clients care about two things: is my data safe, and is a qualified person still responsible? Answer both plainly.
How we look at it at ShoutEx
We draft disclosure wording for your review and set up assistants and note-takers with clear notices. See how to keep data safe.
- AI use hidden from clients.
- Recording without consent.
- Policy wording nobody can understand.
- Claims that AI does the work.
- Plain-language disclosure.
- CPA responsibility stated clearly.
- Consent before recording.
- An answer ready for client questions.
What accountants and regulators say
Here is what regulators and practitioners say.
The principles call for openness about the use of generative AI.
Read the principles →CPAs remain responsible for work supported by AI, which is the reassurance clients need.
Read the guidance →Accountants discuss whether to mention AI in engagement letters.
Browse the threads →Community summaries describe recurring themes in public threads, not individual posts. Vendor pages describe vendor claims, so test them on your own calls.
Read next
Go deeper in the ShoutEx guides, or check the sources behind this answer.
We'll draft disclosure wording and set up clear notices.
Book a call →Follow-up questions
Will clients leave if we use AI?
Few will if you explain safeguards and who's responsible.
Do we disclose every tool?
Categories and purposes are usually enough in a privacy policy.
What if a client says no?
Have a process for clients who opt out of certain tools.