On one hand, tools like ChatGPT offer significant time and cost savings for research and creating standard communications and content. And on the other hand, AI software enables businesses to analyse large amounts of data and perform calculations much faster, more accurately, and more affordably than humans.

However, without careful and responsible human oversight, relying solely on large language models for data-intensive tasks can pose risks. Many AI models are known to be flawed, as they can perpetuate biases, replicate errors, and even generate inaccurate information. This raises concerns about potential reputational damage, as evidenced by Google pausing its AI tool Gemini due to inaccuracies in historical depictions generated by the model.

There is a genuine concern among employees that AI could replace their jobs. Our recent ACCA Global Talent Trends report indicates that many employees feel threatened and left behind by technological advancements. This concern is echoed in conversations with members across various sectors and businesses, highlighting that the potential impact of AI is widespread across different industries and companies of all sizes.

Undoubtedly, AI has already become deeply entrenched in business operations, indicating that its presence is here to stay. The key question then becomes: how can we ensure that AI continues to be a force for good, benefiting both business and society, rather than posing a threat? How do we establish ethical oversight to ensure that humans, not AI, remain central to decision-making in business?

This is a pressing concern for ACCA and for professional accountants, who often act as custodians of a business’s financial data. We dedicated a whole section of our recent report, ‘Risk cultures in banking: where next?’ to examine the potential risks associated with AI. This is also the reason why ACCA continues to advocate for governments and policymakers to prioritise ethics, transparency, and sound governance in their AI policies.

ACCA emphasises that ensuring transparency in the use of AI is crucial for its long-term viability and value, as well as for its benefit to society as a whole. This transparency should include clear explanations of how AI systems make decisions, what data they use, and how they are trained and tested. By fostering transparency, stakeholders can better understand and trust AI systems, leading to more responsible and ethical AI use.

Our research has identified six issues that require attention from both businesses and governments:

• A lack of transparency and trust hindering AI adoption.

• The ability to mitigate bias and discrimination.

• Privacy and security of data.

• An absence of legal and regulatory frameworks — for issues such as liability and copyright.

• Inaccuracy and misinformation.

• The Magnification Effect/unintended consequences — one single AI mistake could be much more serious than human error.

To navigate this complex landscape, individuals and organisations must understand and manage these risks. Transparency will only be achieved if the policies and strategies of the organisation are designed to ensure accountability and good governance. Transparency, including the use of AI, builds trust, ensuring this technology can be used confidently and can be relied on.

Everyday challenges faced by individuals and organisations cannot be ignored. Full acceptance of AI will only occur when an environment based on clear principles is established, and AI adoption adheres to good practices and compliance with existing laws, such as data protection and other rights.

Every organisation should consider creating an AI policy urgently, even if they have not yet started using AI. The accountancy profession is well-positioned to collaborate with governments and other stakeholders to establish appropriate AI policies. Accountants are accustomed to navigating digital transformation and acting in the best interest of their clients and businesses. The same approach can be applied to AI.

However, this must happen quickly. There is understandably significant confusion and uncertainty in the business community, especially among SMEs, who are seeking guidance on implementing practical safeguards.

Steve Hare, the CEO of software company Sage, predicted recently that generative AI will soon be relied on by small businesses handling basic accounting tasks like tax returns, which could eliminate the need for manual data entry and paper receipts. While AI may reduce the demand for routine accounting roles, Hare believes it will create more jobs focused on advisory, forecasting, and strategy. He also said that AI will not replace accountants but rather assist them in tasks and problem-solving. As a result, accountants will need to develop the skills required to work alongside this technology.

While none of us can predict the future with certainty, it’s evident that AI will revolutionise the finance function, leading to the emergence of new roles. However, accountants will continue to play a central role in the success of businesses and organisations. It is crucial to acknowledge the importance of upskilling and reskilling, not just in digital skills but also in strategic thinking, and soft skills like emotional intelligence and storytelling. These efforts will ensure that finance professionals can continue to add value, provide assurance, and maintain trust in a rapidly evolving landscape.

ACCA remains committed to equipping accountants with the necessary knowledge and practical tools to tackle the challenges posed by AI. Through our qualification and short courses, we aim to empower our members to contribute effectively to harnessing the benefits of AI for businesses, the public sector, and society at large.

I am proud that at ACCA, we will continue to offer support to our members, students, and the broader business community in navigating these uncertainties, managing risks, and maximising opportunities. We are committed to supporting businesses and organisations across the Caribbean and beyond.

Author: Paula Marcelle-Irish, Head of ACCA Caribbean