Intuit's, Ted Callahan
The benefit of leveraging AI extends across industries, businesses, demographics - and the accounting industry is no exception. While some have been hesitant to implement AI, more have jumped in to capitalize on its benefits and are seeing their productivity increase tenfold. Many already use AI to execute critical functions such as analyzing financial trends, predicting cash flow challenges, automating low-level tasks, and closing gaps due to the ongoing accounting talent pipeline shortage. In fact, 98% of accountants say they've used AI to help clients and their businesses over the last 12 months.
Despite the range of AI benefits, many firms are in an experimentation phase of integrating AI to figure out where and how it can best be used to deliver the most value to accountants’ operations and their customers. As part of this experimentation, integrating AI within accounting advisory practices raises ethical considerations - according to the 2024 Intuit QuickBooks Accountant Technology Survey, two-thirds (66%) of accountants have already instituted guidelines to notify clients about AI usage. This is a promising start, but more robust strategies are needed to ensure AI is leveraged ethically and effectively in accounting.
Develop a Robust AI Usage Policy
The first and potentially most important step towards ethical AI use is transparency. According to the survey, more than half of respondents (54%) anticipate investing in AI and automation for their business in the next year. When these investments occur, accounting firms should inform clients how AI is used in their financial matters.
Consistent transparency, clear documentation of AI usage, and an open dialogue about AI’s benefits and limitations are crucial to building trust and reassuring clients that their accountant handles their data responsibly and securely. Providing clients with clear, written explanations of AI's role in their services can help demystify the technology and alleviate concerns. That’s why accountants must establish clear AI use policies before actively implementing the technology to ensure their firm operates within ethical boundaries, addresses cybersecurity concerns, and meets high-quality standards.
As a first step, accounting firms can research the necessary safeguards needed to mitigate cybersecurity and legal risks and consult with external experts to ensure client information remains safe. It’s essential to evaluate the quality standards of AI systems to verify their ability to handle complex financial data with accuracy and consistency. A tool that fails to meet these standards might result in errors, flawed insights, or misinformed strategic decisions.
Strengthen Your Firm’s Defense Against AI-related Breaches
As AI becomes more embedded into accounting operations, firms must ensure sensitive financial data is protected against potential cyber threats and breaches. The survey found that 31% of respondents cited
data privacy as a primary concern with AI usage, compared to only 9% who were worried about job loss due to automation. Accounting firms should implement stringent internal data protection protocols to address these concerns. This includes advanced encryption methods, regular cybersecurity audits, and compliance with all relevant data privacy regulations. Investing in cybersecurity training and consulting with experts can help firms stay ahead of future threats and maintain a solid reputation with clients.
It's also critical for firms to investigate data policies from potential AI providers to ensure they align with their privacy priorities. For example, here are a few questions to ask an AI provider: How do you store sensitive financial data? What protocols do you have in place to secure sensitive data from potential leaks? How, if at all, do you use customer data? Who will have access to my data, and can you ensure that it will not be exposed to others?
Stay Up to Date on AI Developments
AI is a tool, and like any tool, its effectiveness depends on the skill of the person using it. As AI technology evolves, accountants must stay informed and adapt to new developments. Ninety-five percent of accountants agree that a willingness to learn and adopt new technologies is crucial for success. Continuous education and training programs should be implemented to keep accountants and bookkeepers updated on the latest AI advancements and their ethical implications. Fostering a culture of continuous learning ensures that staff are well-equipped to use AI tools responsibly and effectively.
Regular workshops, webinars, and certifications can help accountants stay current with AI technologies and best practices. Encouraging staff to knowledge-share, attend industry conferences, and engage with AI communities can also keep them abreast of emerging trends and innovations.
AI is no longer a futuristic concept but an exciting opportunity for the accounting industry that can foster progress. By following ethical practices when implementing AI, accounting businesses can build trust with clients while enhancing their services and improving efficiencies to drive business growth.
About the Author
Ted Callahan is director of Partnerships and Strategy, QuickBooks Partners Segment, at Intuit, where he focuses on further deepening Intuit’s partnership and relationship with the accountant community.