A guide for accounting professionals who want to leverage AI without compromising security
Transformation through Automation
AI is revolutionizing the accounting profession by automating tedious tasks, enhancing accuracy, and providing valuable insights. This transformation allows accountants to save time, reduce errors, and improve decision-making. Additionally, AI enables accountants to offer more value-added services to their clients, such as advisory, planning, and forecasting.
Challenges and Risks
Despite its benefits, AI also presents challenges and risks, particularly concerning security. Accountants need to be aware of potential threats and vulnerabilities that AI can pose to their data, systems, and reputation. It is crucial for accountants to use AI responsibly and ethically, adhering to best practices and standards for AI governance.
What Security Features to Look for in an AI Solution
- Data Encryption: Ensure the AI solution encrypts data both in transit and at rest using strong encryption algorithms and keys to prevent unauthorized access, modification, or leakage.
- Data Anonymization: The AI solution should anonymize or mask sensitive or personal data (e.g., names, addresses, social security numbers) before processing or storing it to protect privacy and confidentiality.
- Data Retention: The AI solution should have a clear policy on data retention and disposal, complying with relevant data protection laws and regulations such as GDPR or CCPA.
- Data Audit: Look for mechanisms to track and record data flows, operations, and actions, providing an audit trail for accountability and traceability. The AI solution should also allow data owners and users to access, review, and correct the data if needed.
- Data Security: Ensure the AI solution stores data in a siloed environment, meaning it doesn’t interact with other users on the platform and the model training is exclusive to your environment.
Be Cautious with Free Tools
Some accountants might be tempted to use free or low-cost tools that offer AI capabilities, such as spreadsheet add-ons, online calculators, or chatbots. However, these tools may lack the same level of security and quality as professional or commercial AI solutions. Additionally, these tools might be trained on the data accountants input, potentially exposing data to third parties or using it for other purposes without the accountants’ knowledge or consent.
To mitigate risks, accountants should follow these precautions:
- Read the Terms and Conditions: Understand how free tools collect, use, store, and share data. Check their privacy and data protection policies for compliance with applicable laws and regulations.
- Limit Data Input: Avoid entering sensitive or personal data into free tools, and delete data from these tools after use. Also, clear the browser cache and cookies.
- Verify the Source: Check the credibility, reviews, ratings, and certifications of free tools. Assess the reputation and trustworthiness of the provider or developer for any complaints or issues
Consult with Your MSP
If you have questions about an AI tool, it is wise to reach out to your Managed Service Provider (MSP) to discuss the security of the tool.
