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Artificial intelligence (AI) is revolutionizing the accounting profession by allowing CPAs to save time, reduce errors, and improve decision-making. However, users need to be aware of potential threats and vulnerabilities that AI can pose to their data, systems, and reputation.
By Marc Umstead
Artificial intelligence (AI) is revolutionizing the accounting profession by automating tedious tasks, enhancing accuracy, and providing valuable insights. This transformation allows accountants to save time, reduce errors, and improve decision-making. Additionally, AI enables accountants to offer more value-added services to their clients, such as advisory, planning, and forecasting.
Despite its benefits, however, AI also presents challenges and risks, particularly concerning security. Accountants need to be aware of potential threats and vulnerabilities that AI can pose to their data, systems, and reputation. This blog offers a brief guide for accounting professionals who want to leverage AI without compromising security.
It is crucial for accountants to use AI responsibly and ethically, adhering to best practices and standards for AI governance. Below are a few security features to look for in an AI solution:
Some accountants might be tempted to use free or low-cost tools that offer AI capabilities, such as spreadsheet add-ons, online calculators, or chatbots. However, these tools may lack the level of security and quality that professional or commercial AI solutions offer. Additionally, these tools might be trained on the data that accountants input, potentially exposing data to third parties or using it for other purposes without knowledge or consent.
To mitigate the risks, accountants should follow these precautions:
If you have questions about an AI tool, it is wise to reach out to your managed service provider to discuss the security of the tool.
Marc Umstead is president of technology solutions provider Plus 1 Technology in Pottstown, Pa. He can be reached at mumstead@plus1technology.com.
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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.