AI could profoundly impact the day-to-day of accounting professionals who want to move past fragmented systems or a lack of real-time insight. However, without a considered approach, there can be concerns around data security and privacy, information bias, and transparency.
For accounting firms who adopt AI ethically and responsibly, they can harness the benefits of automation while also unlocking a better level of service for their clients, maintaining data security, and delivering intelligent, informed accounting services.
In this article, we explore Responsible AI, a major trend in accounting ethics, how it should be used, and how your firm can apply these tools to elevate both service delivery and your reputation.
What is Responsible AI use?
Responsible AI refers to adopting AI accounting software in a way that is ethical, transparent, and secure.
For accounting firms, this means using AI to support decision-making without making compromises on privacy, fairness, or accountability.
When used in an ethical and responsible way, AI can help your firm:
- Deliver more personalised, strategic advice;
- Improve efficiencies within your practice;
- Strengthen your client relationships by providing them with an extra level of transparency;
- Differentiate your practice in a competitive landscape for accountancy.
Why does ethical AI matter to the accounting world?
APES 110 Code of Ethics for Professional Accountants contains the fundamental principles of ethics for accounting professionals.
The code lays out the expectations of accountants to be independent of mind, so they act with integrity and exercise objectivity and professional skepticism.
When implementing AI in their practice, Accountants need to follow the code of ethics. For example, if you’re performing an audit and you have ethical concerns around the information that AI is providing you with, such as accuracy or biases, you have a responsibility to raise these concerns.
An additional consideration is that clients are more aware than ever of how their data is being used. By implementing responsible AI practices, you’re not only complying with regulations, you’re also earning your clients’ trust and positioning your firm as a forward-thinking, secure, and ethical advisor.
For a broader understanding of artificial intelligence, and its use in the accounting industry, read our article: How can accountants harness artificial intelligence?
Responsible AI principles for your accounting practice
Responsible AI principles for your accounting practice
Fairness and inclusivity
AI systems should deliver unbiased and equitable outcomes.
This means ensuring that any AI accounting software your practice uses should be trained on representative data and tested for unintended bias.
Transparency
Clients want to understand how decisions are made.
Use AI accounting solutions that offer clear, explainable outputs, especially for compliance or to surface valuable insights for advisory services.
Data privacy and security
Client confidentiality must remain paramount. Look for AI solutions that operate within a secure, closed environment and avoid sending data to external AI systems.
A robust, layered security approach ensures compliance and peace of mind. This point is paramount for accounting firms, who hold a high volume of valuable personally identifiable information and financial data which poses them at risk to cyberattacks.
Access Evo, our evolution of the Access Workspace platform, features AI-powered functionality and an enhanced user experience. Backed by a robust three-tier data security model, company security, user permissions, and individual confidentiality, Access Evo is setting a new standard of confidentiality and data security for accountants.
Accountability
Responsible AI involves taking ownership of outcomes.
The rapid pace of technological change requires Accountants to develop a deeper learning experience. Consider training sessions or encourage self-learning to ensure that your team is equipped to critique and interpret AI-driven insights, flag anomalies, and understand the limitations of AI systems.
Sustainability
Choose AI technologies that improve not only efficiency, but also your firm’s societal and environmental wellbeing.
This might include reducing paper usage, by using additional software as an opportunity to streamline operations.
For accounting firms who put emphasis on ESG reporting; opting for the functionality of a cloud-hosted AI accounting solution, could make their operations greener and learner.
Accuracy and reliability
Your clients rely on you to get it right.
When you research various AI platforms for your practice, you should ensure that they offer well-tested, high-integrity outputs. The data they utilise should be clean and well-structured, in order to create reliable results.
How to implement ethical AI in your practice
Many businesses are currently racing to take advantage of AI’s capabilities and stay competitive.
Recent research from Forbes found that:
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97% of business owners believe ChatGPT will help their business;
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73% of businesses use of plan to use AI-powered chatbots for instant messaging;
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64% of business owners believe AI will improve customer relationships.
However, when it comes to using AI and in particular generative AI, for your practice, it is important to have clear guardrails in place:
- Avoid OpenAI systems for business purposes.
- Put a clear AI Policy in place and inform all your colleagues.
- Educate colleagues about why using OpenAI has potentially serious consequences.
- Review your AI systems for potential bias, particularly in decision-making tools that influence financial advice or compliance risk.
- Implement AI accounting solutions that integrate seamlessly with your existing cybersecurity and privacy policies. Prioritise AI tools that do not store or share client data externally.
Final thoughts
As your accounting practice embarks on its AI journey, remember it's not just a technical consideration, it's about using such tools in an ethical and responsible way so that you’re using it as a strategic opportunity.
By aligning your technology choices with ethical principles, you can embrace innovation while staying true to the values of the accounting profession.
By proactively addressing common ethical considerations and embracing a framework of responsible use for your firm, you can ensure that AI serves to enhance trust, integrity, and ultimately, the value you bring to your clients.