New Emburse research reveals how financial pressure and AI are driving a new era of expense fraud, compliance risk, and unsanctioned technology use
Emburse, a global leader in travel and expense management, released its latest research into employee spending behaviors. The survey of 2,000 workers in the U.S. and U.K., conducted by Atomik Research, found that employees are using AI tools to commit expense fraud, and they’re using AI tools paid for by their employer to do so.
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The survey of 2,000 workers in the U.S. and U.K., conducted by Atomik Research, found that employees are using AI tools to commit expense fraud, and they’re using AI tools paid for by their employer to do so.
Four in ten U.S.-based employees have used AI to generate a fake receipt for a business expense. Specifically:
- 19% have used AI to completely fabricate a purchase.
- 15% to increase the value of an item they purchased.
- 6% have used AI to replace a receipt they lost for a genuine purchase.
Of those, 40% used company-funded AI tools to do so. Nearly one in ten (9%) of respondents have built their own AI tools to generate fake receipts.
Why employees commit expense fraud
The study showed a correlation between employees who have submitted fraudulent claims and those who are concerned about their personal finances.
- More than one in four (27%) of U.S.-based employees admit to making personal purchases and passing them off as business expenses because of their financial circumstances.
- 20% have considered doing so.
- Compared with data from a similar Emburse survey in 2024, this represents a slight increase of 3% in those who have passed off personal purchases, but a significant increase of 11% for those who have considered it.
In contrast to 2024, more employees are experiencing financial hardship while waiting to be reimbursed for business expenses. Among those who have passed off personal purchases as business expenses:
- 51% have incurred fees (overdraft, excess, or late payment) or interest on a personal credit card (up 11% from 2024) as a result of slow expense reimbursements.
- 23% have been forced to delay personal purchases or payments while awaiting reimbursement for business expenses, an increase of 4% from 2024.
- 16% of US employees report “I’d prefer to use a company card because it takes too long for expenses to be processed,” an increase of 6% from 2024.
- Even the incentive of loyalty rewards isn’t enough to make employees willing to charge business expenses to their personal card and await reimbursement. Only 9% (down from 17%) would choose a personal card over a corporate card in order to earn cashback, and just 7% (down from 14%) would do so to earn loyalty points.
“AI makes it easier than ever to fabricate receipts and bypass traditional controls, so organizations need a more proactive, AI-centric approach to managing spend. With AI increasingly used to create convincing fake receipts and manipulate expense data, the only effective defense is AI-powered prevention and detection,” said Michele Shepard, CRO of Emburse. “Organizations that aren’t leveraging AI will be at a significant disadvantage in finding and stopping these emerging threats. Identifying expense fraud and abuse remains critical, but the most effective strategy is preventing non-compliant spend before it happens through clear policies, fast reimbursements, virtual cards, and AI-powered controls that improve the employee experience while increasing visibility for finance teams.”
Data reveals broader unsanctioned use of AI tools for personal reasons
The survey also revealed a growing challenge for organizations seeking to manage and govern AI spend. Nearly two-thirds (63%) of U.S. employees say they use employer-funded AI tools for personal purposes, and almost one-third (31%) report that more than a third of their AI usage is unrelated to work.
Most say they don’t view this personal use as harmful to their employer, and in some cases believe it benefits the organization:
- 35% say it ultimately makes them more effective at work.
- 28% say it helps them learn AI faster.
- 16% say they are simply making use of large, underutilized token budgets.
However, a significant minority (18%) are motivated by fear or revenge, reporting that they’re taking advantage of AI tools for their personal lives because they believe employers will replace their role with AI. A further 22% are using AI tools paid for by their employer to apply for other jobs.
“For the most part, employees aren’t intentionally misusing corporate AI tools. In many cases, they’ve been encouraged to adopt AI quickly and integrate it into their daily lives. The real challenge for employers isn’t bad behavior, it’s a lack of visibility. When employees use company-funded AI for everything from personal tasks to job searches, organizations need a clearer understanding of what’s being purchased, how it’s being used, and whether it’s delivering value,” Shepard continued. “As AI spending continues to grow, finance and technology leaders will need the same level of oversight and accountability they’ve long expected for every other category of business spend.”
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