Tips for Accountants on the Ethical Use of AI
Published in: Financial Accountant (IFA) · January 2025
Despite the productivity benefits of AI, it poses ethical risks accountants would do well to consider. This article provides expert guidance on ensuring responsible AI adoption while maintaining professional standards.
What is Ethical AI?
Ethical AI aims to complement human expertise rather than replace it.
“It means that, as accountants, we’re using the technology as a tool to enhance our decision making and efficiency, all the while safeguarding client data and adhering to the strictest professional standards.”
Key Ethical Concerns
AI isn’t infallible and can produce outputs that are misleading and incorrect, often known as ‘hallucinations’. These inaccuracies can have severe consequences if relied upon without human oversight.
Beyond accuracy concerns, AI presents the risk of commoditisation of expertise, which may put pressure on firms to lower fees. This could lead to a ‘race to the bottom’ on pricing, where clients undervalue the strategic and advisory expertise of accountants.
“It is essential that accountants deploy their critical thinking skills to quality assure the outputs of AI-driven systems.”
Recommendations for Ethical AI Adoption
- Comply with relevant laws and industry standards including GDPR
- Establish clear ethical frameworks for AI usage in your organisation
- Deploy critical thinking to quality assure AI outputs
- Train staff to evaluate outputs – do they make sense? Do they reconcile with facts?
- Implement strict controls to avoid sensitive information leaking
- Remove sensitive data from training sets when permission is revoked
How Ethical AI Benefits Accountants
With over 40% of partners reporting they work an extra day a week just to keep up, AI can help by automating repetitive, time-consuming tasks and supporting routine work like creating meeting minutes.
AI has real potential in surfacing anomalies in data. This will improve assurance levels in audit, help drive fraud detection controls, and drive deeper insights in management accounts. These benefits will only come to fruition when supported by accountants with first-rate critical thinking skills.
“This allows staff to focus on higher-value analysis work and client interactions, enhancing productivity and making the profession more attractive.”