CEOs and CFOs must cultivate trust in artificial intelligence (AI) within their organizations by implementing measures to mitigate associated risks. As AI assumes a more prominent role in accounting and financial reporting, CFOs and financial controllers must ensure robust oversight and control of AI systems. In its inaugural insight series, “AI Monitor: Trust,” ACCA delves into the pivotal concept of trust and advocates for finance professionals to prioritize the establishment of AI governance and risk management protocols.
Key steps include:
- Investing in AI literacy and skills development: Finance professionals should commit to ongoing education and training to assess AI outputs critically, communicate effectively with stakeholders, and make informed decisions.
- Collaborating through cross-functional teams: Active engagement with IT, data science, legal, and risk management teams is essential for effective AI integration.
- Developing an AI governance framework: Starting with critical applications, finance professionals should implement clear policies, oversight mechanisms, and governance practices within their organizations.
While AI offers numerous benefits, such as deeper insights and enhanced efficiency, it also introduces challenges to trust in accounting and finance reporting. This evolution requires adapting traditional trust mechanisms to accommodate the new dynamics introduced by AI.
Alistair Brisbourne, Head of Technology Research, ACCA, said: ‘Introducing AI is both about trust in the systems and trust in the people that we work with, and how we bring those two elements together. CEOs and CFOs need to focus on making the changes needed to harness the many potential opportunities but also retain trust. This includes upskilling to deal with the technology and introducing new knowledge into their organizations. They also need to focus on the governance, the oversight and culture required to allow different teams to work together effectively. It’s about bringing change management and governance together.
AI Monitor: Trust highlights various risks associated with AI in accounting systems, including:
- Influencing decision-making without transparently explaining the reasoning behind forecasts or recommendations.
- Excessive reliance on AI processes in auditing and assurance, potentially leading to decreased human intervention and judgment.
- Concerns regarding AI bias or errors in fraud detection, risk assessment, and compliance monitoring.
- Dependence on AI-powered virtual assistants that may provide inaccurate or inappropriate responses.
“In the AI era the role of finance professionals is to focus on the outcomes driven by technology. Value lies in understanding how these outputs inform decisions and actions that drive business outcomes.” Alistair Brisbourne, Head of Technology Research, ACCA
