Accountants' Role In AI Adoption Extends BeyondTraditional Financial Controls, Professional Judgement Critical

Findings from the latest in ACCA's series of AI Monitor reports, Risk and Responsibility, underscore the vital role of professional judgement in ensuring the successful adoption of artificial intelligence (AI). As organisations in the Middle East accelerate AI integration, accounting professionals are uniquely positioned to guide ethical and effective implementation, balancing innovation with robust governance.

"In the Middle East, as AI technologies become integral to business operations, accounting professionals play a crucial role in connecting technological potential with practical application. Their expertise ensures that AI initiatives are not only innovative but also aligned with ethical standards and strategic objectives," comments Kush Ahuja, Head of Eurasia and Middle East at ACCA.

The Risk and Responsibility report highlights that while AI has the potential to enhance human capabilities, it also presents challenges related to control, reliability and professional responsibility. For organisations in the Middle East, where AI adoption is expanding rapidly, it is essential to balance technological advancements with strong governance frameworks.

When it comes to classifying AI risks, a couple of immediate threats for many organisations relate to the significant amounts of investment being committed and either unrealistic expectations or poor judgement concerning the potential impact of integration. While AI continues to promise huge potential, real value remains far more elusive and difficult to quantify.

ACCA believes success will come through combining traditional financial acumen with new forms of technological oversight to maintain the profession's fundamental role as arbiters of trust and integrity. These capabilities don't replace professional judgement, but underscore its importance.

Professional judgement and critical thinking will be fundamental to dealing with AI-generated insights.  Demonstrating the application of professional expertise and documenting how decisions are made when using AI is important to support transparency and accountability.

Alistair Brisbourne, head of technology research, ACCA, said: "Safely introducing AI into how our organisations work and make decisions isn't just about technology - it's about redefining how we exercise things like professional judgement. As regulatory frameworks evolve and AI capabilities expand, success will depend on striking the right balance: leveraging AI's analytical power while strengthening professional expertise."

"Traditional concepts of materiality and professional scepticism are being reframed in the context of AI systems that can analyse entire datasets rather than samples during an audit, for example. This shift challenges accountants to think differently about risk assessment and the nature of professional evidence."

While professionals don't need to be technical experts, they need sufficient understanding to exercise appropriate judgement. Being an AI specialist in every application is impossible. Instead, the profession needs to develop consistent frameworks that ensure uniformity in language and practice across different projects and applications.

The report points out that accountants are uniquely positioned to harness AI's potential while maintaining robust safeguards. But their role in AI risk management extends beyond traditional financial controls. Moving forward, their contribution must reflect a three-layered approach: data, architecture, and business impact.

Brisbourne added: "Organisations need to build principles of transparency, accountability and clear procedures for monitoring and improvement into their AI adoption and implementation plans. If they do that, they'll find themselves well-positioned to leverage new capabilities and meet changing regulatory and stakeholder expectations." 

Read the shorthand report.