In the continuously shifting technology industry, AI tech has gained significant ground, becoming widely used in most, if not all, sectors of business – the accounting industry is not an exception. Considering its popularity and widespread use, it’s safe to say that the shift towards AI is not going anywhere anytime soon. But as the saying goes, with great power comes great responsibility, and AI is pure power. Unlike other tools, the uses for AI are limitless, but because it is in its infancy in mainstream corporate America, most people have yet to develop boundaries i.e., the “do’s and don’ts”, when using AI.
The Importance of an AI Usage Policy
Question: Should your accounting firm have an AI usage policy?
Answer: Absolutely yes!
And here’s why…
To Define How AI Will Be Used in Your Accounting Firm
First and foremost, an AI usage policy defines the appropriate use of AI tools in your firm and within the accounting industry at large. Outlining these expectations is critical so your team understands what is considered acceptable when leveraging AI technology. Without clear-cut guidelines, you risk the possibility of misusing or over-relying on AI, which may result in consequential mistakes or a breach of client confidentiality.
To Empower Employees Through Policy
Approach creating an AI usage policy through a lens of empowerment and less about restriction. How do you do this? By keeping it simple. Define only the scope and limitations of using AI in accounting, i.e., industry-specific regulatory requirements. This approach provides your team with the freedom to initiate ways to increase productivity and efficiency while keeping data secure and operations within controlled parameters. With this approach, employees will feel more confident with emerging technologies and understand exactly how to contribute to a culture of responsible AI use and accountability.
To Manage Risk Associated with AI
An AI usage policy is a must-have for risk management. Accounting professionals handle confidential and sensitive data, making it a priority to ensure that AI tools are used responsibly and in a secure environment. An effective policy will detail best practices for managing different types of information by:
- identifying levels of sensitivity,
- explaining how each level of data should be handled,
- providing clear guidance in selecting the most appropriate tool for each task.
To Build Trust with Your Clients
To sum it up, an AI usage policy shows your clients that your accounting firm prioritizes data security and is committed to maintaining the highest degree of professionalism and safety standards. With the frequency at which data breaches occur today and the level of privacy concerns raised, taking artificial intelligence usage seriously enhances your company’s reputation and builds trust with customers.
