While potentially offering tremendous benefit, the broad applicability of AI across society must be handled carefully and professional accountants have a key role to play.
ACCA (the Association of Chartered Certified Accountants) and Chartered Accountants Australia and New Zealand (CA ANZ) reveal in a new report the pressing need for the accountancy profession to make the necessary connections between Artificial Intelligence (AI) and its relationship to environmental, social and governance (ESG) dimensions.
Polling over 5,700 respondents across 21 countries and geographies, the research reveals a cautious tone, with fewer than half (43%) believing that the impact of AI on their rights as an individual is positive – such as safety and personal security, and levels of fairness, choice and transparency.In the Middle East, 59% believe this to be the case
ACCA and CA ANZ say in Ethics for sustainable AI adoption: Connecting AI and ESG that professional accountants, with their explicit and long-standing commitment to ethical practices, are well placed to guide organisations along a responsible path for AI adoption.
Key findings from the research amongst Middle Eastern accountancy and finance professionals shows that:
- 59% believe that their leaders prioritise ethics as highly as profits – compared with 66% globally.
- 52% believe that the impact of AI on overall standard of living in society is positive – compared to 64% globally.
- 48% have a basic understanding of what an algorithm is and 27% say their organisation has implemented an ethical framework for AI use.
Fazeela Gopalani, head of ACCA Middle East comments: ‘This presents a wake-up call for the accountancy profession to lead the way and become the super connectors needed to ensure an ethical approach. Their management of the transition to mass usage of AI in an ethical, responsible manner is essential if sustainable long-term value is to be secured from it.’
The report’s nine recommendations include the need to set tone at the top on AI adoption by prioritising an approach that is consistent with organisational values such as diversity and inclusion in considering the impact of AI on under-represented groups, or fairness when it comes to recruitment or surveillance of employees: and transparency such as appropriately disclosing AI use to customers.
Another recommendation for the profession is to challenge greenwashing and seek insights from AI tools to help with professional scepticism in examining whether the organisation’s claims about sustainability, such as on achieving net zero targets, are matched by its performance. Suspect claims need to be challenged.
Speaking of the global picture, Helen Brand, chief executive of ACCA says: ‘AI adoption must consider the needs of all, especially the under-represented and vulnerable in society. That’s why one of our recommendations is to ensure the profession exercises its professional judgement, because AI may create previously unseen situations. We recommend that professional accountants need to avoid over-reliance on simplistic checklist-based approaches which don’t give the full picture or leave space for unintended consequences.’
Also commenting on the global findings, Ainslie van Onselen, chief executive of CA ANZ adds: ‘Our report found that in order to ethically and sustainably adopt AI, organisations need effective governance mechanisms. This starts with setting the right tone and culture at the top and covers a range of areas from oversight and delivery procedures to regulation and data governance. AI is a strategic endeavour that should be spearheaded by leaders who know and execute on the difference between what we have a right to do and what is the right thing to do. It’s important to build knowledge and skills at the intersection of AI, ethics, and sustainable development. This aligns well to the accountancy profession which can play a key role in driving responsible adoption.’
The global accountancy profession is bound by the Code of Ethics (the ‘Code’) and its five fundamental principles as set out by the International Ethics Standards Board for Accountants (IESBA). These are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour
ACCA is the Association of Chartered Certified Accountants. We’re a thriving global community of 227,000 members and 544,000 future members based in 176 countries and regions that upholds the highest professional and ethical values. We believe that accountancy is a cornerstone profession of society that supports both public and private sectors. That’s why we’re committed to the development of a strong global accountancy profession and the many benefits that this brings to society and individuals. Since 1904 being a force for public good has been embedded in our purpose. And because we’re a not-for-profit organisation, we build a sustainable global profession by re-investing our surplus to deliver member value and develop the profession for the next generation. Through our world leading ACCA Qualification, we offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. And using our respected research, we lead the profession by answering today’s questions and preparing us for tomorrow.
About CA ANZ:
Chartered Accountants Australia and New Zealand (CA ANZ) represents more than 128,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.