AIS 2024 - D2S5 - Ethical Consideration of AI in Accounting & Finance & Data Privacy

AIS 2024 - D2S5 - Ethical Consideration of AI in Accounting & Finance & Data Privacy

Introduction

22 years back, the institute's vision aimed to foresee how technology would evolve and ensure we, as Chartered Accountants, wouldn't be left behind. Over time, people have gained certificates representing knowledge, but the wisdom to apply that knowledge is now at the forefront. It's essential for every Chartered Accountant to take a step forward, ensuring that technology supports every facet of our profession: tax governance, audit, accounting, and more. This vision is especially crucial as we navigate the era of AI.

Opening Remarks

Good afternoon. It is my profound privilege to be the session chairman for this excellent session on the ethical considerations of AI in accounting and finance and data privacy. The role of AI in our profession goes beyond just technology – it brings ethical implications and a need to protect data privacy. As professionals, it’s our responsibility to ensure that our practices uphold high standards of transparency, fairness, and security.

Ethical Considerations of AI

Speaker Introductions

We are honored to have esteemed experts share their insights on today’s topic. CA Sanjay Jani, Founder and CEO of Go North Ventures, and Mr. Suresh Balakrishnan, Founding Team CFO and Legal and Investor Relations at Cognida. The session’s moderator is CA Mr. M. Rindra Vikram, known for his commitment to ethical practice.

Perspectives on AI and Ethics

Should Machines Have Ethics?

Vikram: Ethics is about doing good and not causing unnecessary harm. Who decides what is good? Should it be elected politicians, intellectuals, businessmen? Sanjay brings up the concept that leaving ethical decisions solely to private enterprise isn't ideal. The government and regulators must take an active role in setting guardrails for AI.

Will AI Destroy Jobs?

Suresh disagrees that AI will destroy jobs. Instead, it will transform jobs, creating new opportunities while making existing roles more efficient. For example, the rise of the role of “prompt engineer” wouldn’t have been possible without AI advancements.

Should We Be Worried About AI?

Sanjay believes that AI’s potential for positive impact means we must also worry about consequences. For instance, AI enables personalization in healthcare and education, maximizing resources and potential outcomes. However, we need clear guidelines and regulations, much like how counterfeit currency is legislated.

Regulation and Fairness in AI

Intrusion of Privacy

Vikram points out the concern with privacy. Google and Facebook have ample data, often more than we might realize. This concern extends to AI’s utilization of data, where regulation is crucial to ensure the responsible use of personal information.

Can AI Be Sued?

Suresh explains that an AI system itself cannot be sued. The responsibility lies with the companies behind these systems. Consider driverless cars, for instance. Accountability in case of accidents is attributed to the company operating these AI systems, not the AI itself.

AI and Intellectual Property

There’s a debate on whether AI inherently leads to plagiarism. Suresh notes that AI systems can help verify and prevent plagiarism, thus preserving creativity and originality. Yet, with the existing vast data utilization, legislations need to define clear pathways for fairness.

What’s Next?

The Role of Chartered Accountants

Sanjay concludes that Chartered Accountants have a historical standing of trust and integrity. As the profession adapts, there is a unique opportunity to lead in verifying, certifying, and auditing AI systems.

Keywords

Keywords

• Ethics
• AI
• Chartered Accountant
• Data Privacy
• Regulation
• Originality
• Intellectual Property
• Fairness
• Personalization

FAQ

FAQ

1. What are the ethical implications of AI in accounting and finance?

   • The ethical implications involve ensuring transparency, fairness, and the responsible use of personal data.

2. Will AI destroy jobs?

   • AI will transform jobs rather than destroy them. It will create new job roles and make existing roles more efficient.

3. Should we worry about the consequences of AI?

   • Yes, the potential positive impacts do not negate the need to set guardrails and regulations to manage the consequences responsibly.

4. Can AI systems be sued for erroneous decisions?

   • Responsibility for errors lies with the companies behind AI systems, not the AI itself.

5. Does AI lead to plagiarism?

   • While AI can utilize vast amounts of data, there are systems in place to prevent and verify plagiarism, ensuring the preservation of creativity.

6. What role do Chartered Accountants play in the regulation of AI?

   • Chartered Accountants are uniquely positioned to lead in auditing, verifying, and certifying AI systems, thus ensuring ethical standards.