Tech Tips
AI Usage – Safety & Compliance Risk
Guidelines and examples highlighting where AI answers can hide compliance risk, and how to verify before relying on them.
Before accepting an AI answer, set this rule:
“If anything is unclear, ask clarifying questions before answering.”
Why this matters:
• Reduces assumptions
• Improves relevance
• Cuts rework during review
Better inputs improve outputs.
Final judgment still rests with you.
Using AI for summaries?
Safe workflow:
• Use AI to *draft structure*
• You verify numbers, sections, clauses
Never ask AI:
“Summarise impact for my client” without checking the source document.
AI sounds confident — even when wrong.
Never paste client data by default.
Before typing into any AI chat, pause and ask:
“Would I paste this into an email to a stranger?”
If the answer is no,
rephrase the question without identifiers.
Before trusting an AI answer, ask this one line:
“List assumptions, uncertainties, and areas where this answer may be wrong.”
Why this works:
• AI normally hides doubt
• This forces it to expose weak spots
• You instantly know what to verify
Treat AI as an assistant, not an associate.
Judgment remains yours.
We saw why one safety question matters.
Now, a real compliance example.
Ask AI:
“Is Form 15CA required for all foreign remittances?”
AI’s first answer (often simplified):
“Form 15CA is required for foreign remittances made by residents.”
Now apply the safety line:
“List assumptions, uncertainties, and areas where this answer may be wrong.”
AI then surfaces what actually needs checking:
• Certain remittances are exempt under Rule 37BB
• Small-value payments may not require Form 15CA
• Nature and purpose of remittance matters
• Bank and remittance category differences apply
Lesson:
An apparently correct AI answer can still hide *compliance risk*.
The second question turns the answer into a *verification checklist*.
AI gives speed.
That one question gives safety.
Judgment remains yours.
GST Example (Real Compliance Risk)
Ask AI:
“GST rate on works contract for government buildings?”
AI’s first answer (often simplified):
“12% GST applies to works contracts provided to the government.”
Now apply the safety line:
“List assumptions, uncertainties, and areas where this answer may be wrong.”
AI then exposes things to check:
• Nature of building (residential vs commercial)
• Government or public use
• Specific notifications & amendments
Lesson:
A neat one-line answer can hide invoicing and tax risk.
The second question shows where your judgment is needed.
Speed + Safety = Smart AI use.
