AI-generated fraud adds new pressure to UK expense processes

By Vriti Gothi

Expense management in UK businesses is proving to be a source of stress for employees while raising new challenges for finance leaders, according to research from spend management provider Soldo. The study highlights a widening gap between how expense policies are designed and how they are experienced, resulting in operational inefficiencies, missed growth opportunities, and growing concern over AI-generated fraud.

The research found that despite finance leaders’ confidence in their policies, many employees are hesitant to submit expense claims. Over half of UK employees admitted to holding back, with 41% never submitting claims at all. Even when making legitimate work-related purchases, employees often refrain from claiming reimbursement due to uncertainty or fear of rejection. This disconnect is striking: while 69%of finance leaders believe the rules are clear, only 39% of employees feel confident about what can be expensed.

This misalignment has a tangible impact on employee morale. Nearly a quarter of employees 23% ranked challenging a rejected expense claim as the second most stressful task at work, just behind asking for a pay rise. Many employees also turn to their line managers rather than finance departments for clarity on expense policies, which fragments control and oversight. The result is not only stressed employees but also inaccurate company spending data, missed opportunities for growth, and the potential for friction between staff and finance teams.

Finance leaders, for their part, report their own frustrations. Many are concerned that employees assume all claims will be reimbursed, submit expenses that may not qualify, or submit claims late. These perceptions, combined with employee uncertainty, highlight the need for businesses to streamline expense processes and improve communication to bridge the gap between policy and practice.

Adding to the complexity is the rise of AI-generated expense fraud. Tools such as ChatGPT and Midjourney make it possible to create realistic fake receipts, and finance leaders are increasingly worried about this growing threat. According to the research, 74% of finance leaders are concerned that employees could exploit AI to manipulate expense claims. Traditional expense systems often struggle to identify such sophisticated fraud, emphasising the need for modern solutions that are equipped to detect anomalies in real-time.

Sacha Hermann, CFO at Soldo, “The only way to prevent AI-driven expense fraud is to tie every digital payment to the expense report, ensuring it is auto-tagged, traceable, and visible. Harnessing AI to fight AI empowers finance teams with confidence and control, while also giving employees clarity and reassurance when making work-related purchases.”

The research underscores the urgent need for UK businesses to modernize expense processes, provide clear and user-friendly policies, and leverage technology that both supports employees and safeguards company finances. By addressing these challenges, organizations can reduce stress, improve compliance, and gain a more accurate understanding of business spending.

The study was conducted via Opinion Matters between August and September 2025, surveying 1,010 UK employees and 250 finance leaders, including CFOs, finance managers, financial directors, and heads of finance.