When people first encounter AI-driven expense categorisation tools like Dext or Expensify, a reasonable question follows: do I still need an accountant? The short answer is yes, and the reason becomes clear when you look at what the AI is actually doing.
What the tool handles
AI categorisation reads transaction data - merchant name, amount, currency, date - and assigns a spending label. It can process hundreds of entries in seconds and apply consistent rules. For routine tasks like sorting fuel receipts, software subscriptions, or office supply purchases, it performs well.
Where it stops
An accountant interprets context. If a sole trader in Dublin takes a client to lunch, the AI labels it as Dining. The accountant determines whether it qualifies as a deductible business expense under Irish Revenue rules, whether the client relationship justifies the amount, and how it should appear in year-end accounts. That layer of judgement is not in the software.
Tax compliance, audit preparation, and financial advice all require human reasoning applied to specific circumstances. A tool that sorts categories does not understand thresholds, exemptions, or the difference between a capital and a revenue expense.
A more accurate framing
AI categorisation reduces the time an accountant spends on data entry and sorting. It does not replace the analysis that follows. For someone new to the topic, the useful mental model is: the AI prepares the data, the accountant interprets it.