AI-generated documents are creating fresh risks for business expense systems, according to new analysis from the Institute of Chartered Accountants in England and Wales (ICAEW).
Altering receipts to exaggerate or invent costs is not new, but freely available generative AI tools now allow convincing fake receipts to be produced in seconds. ICAEW has highlighted Financial Times reporting that software provider AppZen saw AI-generated receipts account for about 14% of fraudulent documents submitted in September 2025, compared with none the previous year. Another provider, Ramp, is reported to have identified more than $1 million (around £760,000) of suspicious invoices in 90 days.
The article warns that these AI-created receipts can mimic thermal paper, creases and camera blur, making them hard to distinguish by eye. However, the same technology can be used defensively. Specialist tools can scan images for unusual lighting, texture and other digital fingerprints associated with AI generation, flagging items for further review.
ICAEW suggests businesses treat expense checks with the same discipline as other financial crime controls, cross-checking receipts against diaries, travel patterns and normal spending levels. Warning signs include amounts that regularly sit just below approval limits, inconsistencies in VAT details or merchant information, and receipts that do not match known locations or trading hours.
Ultimately, the body stresses that technology should complement, not replace, human judgment. Strong approval processes, clear policies and a culture of challenge remain essential to reduce the risk of AI-driven expense fraud.
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