The ethical implications of the use of artificial intelligence (AI) in many parts of our lives is an ongoing discussion, but for finance and accountancy professionals it is a critical topic that demands careful appraisal and analysis.
AI tools are already being used at multiple points in the workplace of finance professionals, and on occasion its implications are not fully understood or disclosed. What does this mean for finance teams? Or auditors? Or for a profession whose trust-based relationship with clients, the public and other stakeholders is built on clearly stated principles?
‘Without adequate care, we can automate the production of risk’
A new report addresses these questions, and sets out the urgent need for finance professionals to understand the ethical implications of the use of AI, so that they can be sure that the fundamental principles that underpin the profession are consistently applied in the digital age. Shining a light on AI’s ethical threats for finance professionals is the sixth in the AI Monitor series of reports, which identifies and examines the accountancy perspective on pressing AI challenges.
Key threats
This latest report by ACCA and the Chartered Institute for Securities & Investment explores the intersection of AI and ethics in finance, ‘equipping finance and financial services professionals with both the technical fluency and ethical judgment to navigate a complex digital landscape’.
The report identifies the key ethical threats associated with AI – fairness, bias and discrimination – and discusses the competencies required to overcome them. Using real-world perspectives gathered during a series of global roundtables of finance professionals, the report explores three fictional, cross-disciplinary scenarios, which involve data sharing for tax advice, audit automation and algorithmic appraisals in HR.
The roundtable discussions identified a selection of topics, including the specific ethical challenges that AI presents to finance professionals. ‘The core ethical question,’ says the report, ‘is not whether the technology is moral – but whether it is developed and used by humans in a way that is beneficial to society.’
Global Ethics Day at ACCA
See more ACCA ethics-related resources, including our Global Ethics Day video
Judgment and literacy
The report argues that the fundamental principles that govern finance professionals become especially critical for finance professionals in their use of AI. The scale, speed and opacity of algorithmic decision-making, it says, requires ‘proactive adherence’ to these principles, with a clear understanding of any threats and trade-offs. ‘For example, we may all agree that discrimination is bad – but that alone does not determine how it is addressed.’
‘Governance without leadership risks becoming bureaucratic theatre’
Finance professionals must understand how their ethical judgments are transformed into systems and decisions using AI, which can cause potential complication. ‘For example,’ says the report, ‘if we do not understand how an ethical consideration (eg fairness) is incorporated into the technology used, do we fully grasp the issue?’
Building ‘AI literacy’ – the combination of technical understanding with ethical judgment to scrutinise AI’s use, outcomes and alignment with the public interest – should be a priority to underscore the competence of accountants in an area that is becoming central to the profession, says the report. Accountants need to be able to speak confidently not just about ethics, but about how their fundamental principles are technically implemented.
Set the tone
The report concludes that effective mitigation of the ethical threats from the use of AI requires coordination from a range of stakeholders; the responsibility cannot fall solely on individual users. Finance professionals are responsible for applying ethical principles and exercising their judgment, but organisations must provide the necessary context for individuals to exercise judgment, senior leaders need to set the tone by prioritising the allocation of ethical resources, governance frameworks are required to set clear policies, and policymakers and regulators should set fundamental expectations.
‘The ethics of AI is no longer a peripheral concern. It is a core capability reshaping finance’
‘These all work in concert,’ says the report. ‘Individual ethical behaviour without organisational support can lead to isolation and limited impact. Governance without leadership risks becoming bureaucratic theatre. Leadership without regulatory frameworks can create competitive disadvantage for ethical organisations. And regulatory frameworks without individual understanding and commitment miss the spirit of ethical use.’
While AI poses risks to the fundamental principles that professionals apply in their working lives, it also brings significant opportunities. ‘Finance professionals are uniquely positioned to lead the ethical use of AI to enhance integrity, transparency and societal benefit,’ the report says. ‘Balancing efficiency with integrity ensures application of our fundamental principles while maintaining client trust.’
The report includes a checklist of considerations for individuals as well as for organisations and policymakers as they navigate a world where AI is increasingly prevalent. ‘The ethics of AI is no longer a peripheral concern,’ it concludes, ‘it is a core business capability reshaping the future of finance. Proactively embedding our fundamental ethical principles into AI adoption enables professionals to unlock value, build trust and lead responsibly.’
Ethics at 'Accounting for the Future'
ACCA’s annual virtual conference, Accounting for the Future (25-27 November), features the session ‘Ethical culture and governance: reinforcing public trust’. Join us on 26 November at 12pm (GMT) to explore how the accounting profession plays a critical role in upholding public trust in the financial system.
Register to attend live or on demand. Find out more about the other sessions in Accounting for the Future
