As artificial intelligence (AI) transforms the accounting landscape, firms face exciting opportunities – but also significant challenges which must not be underestimated.
When using AI, ethics, accountability and data security must all be considered.
The importance of an AI policy
First and foremost, prior to introducing AI into the firm, a clear AI policy is essential. It establishes guidelines for how and when AI tools can be used as well as who should be using them, which ensures accountability and consistency.
Key elements of an AI policy include:
- type of data: knowing which data can be entered into AI tools is important for the whole team, think about splitting it between non-confidential and confidential.
Note: Many AI tools claim to redact confidential data, but research is imperative on individual tools.
- software overview: a comprehensive list of permitted software that can be used in the firm. This could be split into sections of AI specific software (such as ChatGPT) and/or software that has AI capabilities built into it (such as using Co-Pilot in Sage)
Note: Choosing the right AI tool is crucial. Free or standalone products like ChatGPT or Claude may lack robust security; we usually find that ‘free’ tools are using the information to train the model and therefore making you and your data the product.
- data security: ensure compliance with UK GDPR and other data protection laws.
- human oversight: maintain human involvement in critical decisions, avoiding full reliance on AI.
- employee training: regularly train staff on ethical AI practices and security protocols.
A policy will allow your team the freedom to use your tools whilst reassuring clients that their data and interests are protected.
Ethics, accountability and data security
AI is a powerful assistant but not a replacement for human judgement. Ethical concerns arise when decision-making is automated without human oversight. Now is a great time to focus on upskilling your team’s soft skills such as effective communication.
AI should be seen as a supplement, not a decision-maker, in critical financial or advisory processes, therefore all AI-influenced decisions should be reviewed by qualified professionals.
Just as we do with all digital technology, data security must be a top priority for firms using AI.
Knowing the systems you are using is essential for this. For example, ring fencing your data in specific tools so it cannot learn from your data, or switching off the capabilities to learn in tools such as ChatGPT.
It is also recommended that you perform regular audit, implement access controls and educate your team regularly.
Client concerns about AI usage
Clients may feel uneasy about their data being used in AI-driven processes. To address these concerns ensure you are transparent with how you are using their data and how you aim to protect it.
Always give clients the choice. For example, if you are using a note taker. However, this could also be a good opportunity to discuss the main benefits of AI including how they may want to use it in their business.
It is also important that we remember clients will be coming across these tools in their personal and business life which may mean they expect their accountant to be using them.
Whilst AI offers immense potential to revolutionise accounting, its use must be underpinned by strong ethics, accountability and data security. By adopting a clear AI policy, choosing secure tools, addressing client concerns, and maintaining human oversight, firms can responsibly embrace AI and reap the rewards it presents.
Billie McLoughlin – 20:20 Innovation
