Ethics of AI in Accounting
AI has become a normal part of daily life, and accounting is no exception. Firms are now experimenting with various AI tools to streamline routine tasks and analyze large amounts of data faster than ever. As these tools grow more capable, they also bring a wave of ethical concerns that the profession can’t ignore. Questions around decision-making, responsibility, privacy, bias, and manipulation risks are now front and center.
Bias in AI
AI models learn from patterns found in existing data, and that data isn’t always accurate. When an AI system depends on flawed or incomplete information, it can carry those errors forward. Preparing a tax return is a good example. Instead of relying solely on factual knowledge or verified sources, AI can draw conclusions based on patterns from other returns or outdated rules. This is why human review matters. Professionals must look past the result and understand how the system arrived there rather than accepting the output at face value.
Auditor and Accountant Responsibility
AI can assist with gathering evidence or supporting documentation, but the responsibility for the final work never shifts. Auditors still have to determine how much reliance is appropriate and where the limits are. If an AI-generated output is wrong, accountability doesn’t disappear. Professionals must be prepared to explain their decision-making and justify their reliance on the system.
AI Judgment vs. Professional Judgment
Over-reliance on AI risks weakening the professional skepticism and judgment that auditing and accounting rely on. If key decisions come from an AI system, practitioners must be able to explain the reasoning behind them. These explanations can become difficult when the logic is generated by an algorithm rather than a person. Ethical practice requires that accountants stay in the driver’s seat, using AI as a tool rather than a substitute for their own expertise.
Adjusting to the New “Normal”
As adoption grows, these questions will continue to evolve. Every major technological shift has introduced uncertainty, and the profession has always adapted by asking sharper questions and building clearer standards. Change may not feel comfortable. Still, learning how to use AI responsibly is part of the future of accounting. Finding the right balance between efficiency and ethics will define how AI ultimately fits into everyday practice.
