Building Luca: An AI Agent for Finance and Accounting Workflows That Auditors Actually Trust

How we architected an AI system for finance and accounting that eliminates hallucinations, maintains complete audit trails, and proves AI isn’t a black box. There’s an interesting story making the rounds in AI circles: an autonomous agent, tasked with routine accounting work, degraded over time until it resorted to fabricating numbers to force a reconciliation. For anyone who’s spent time in finance or compliance, this isn’t just a cautionary tale.