Accountants say AI poses ethical challenges

Some accountants may be worried about AI taking over their jobs, but perhaps working alongside AI could be just as hazardous to an accounting career.

A survey of global accountants by the Association of Chartered Certified Accountants found that AI is accountants’ greatest ethical concern. Almost two-thirds of the 1,178 respondents (61%) named AI among the profession’s top three ethical challenges—nearly twice as many as the last time the survey was fielded, when 32% named AI as a top-three concern in 2024.

Ethical concerns around AI, the authors of a report on the survey wrote, include “overreliance, verification, reduced human judgement, confidentiality, inadequate human oversight on AI outputs, transparency, unclear accountability, lack of appropriate governance, and weak organizational guardrails.”

Finance and accounting professionals in 135 countries chose AI as a top ethical challenge more often than they did having ethical leadership (43%) or an ethical culture (39%), the geopolitical environment (34%), and even fraud (33%).

Perhaps that shouldn’t come as a surprise. In the past twelve months, media reports have alleged instances of hallucination errors in reports by large accounting firms. The IRS has published advice for tax professionals cautioning that AI work products need to be carefully reviewed. And a new auditor’s guide from the AICPA cautions that AI tools “can introduce new risks that auditors must be cognizant of in fulfilling the critical role they play in performing financial statement audits,” according to a press release.

On the other hand. Accountants do find AI useful: Nearly three-quarters (72%) said it increases the quality of their work and makes them more efficient. And they’re confident in their ability to use AI prudently: 89% said they “apply professional skepticism and ethical judgment when using it.”

In fact, the authors of the ACCA report argued that AI might even increase the need for professional judgment. “AI-assisted outputs still require review, challenge, documentation, and the ability to explain how conclusions were reached,” they observed.

The more things change…Overall, accountants haven’t noticed a rise in misconduct over the past two years, AI notwithstanding. A little over half (53%) said they had witnessed unethical behavior on the job in the past three years, a slight drop from 2024’s finding (55%). Less than a quarter (22%) said they personally had been asked to do something unethical in the past three years, fewer than in 2024 (24%).

“Finance professionals are not asking for more rules, the fundamental principles remain the ethical anchor,” Sarah Lane, head of ethics and assurance at ACCA, said in a statement. “They are asking for the tools, support, and guidance needed to apply the fundamental principles in an increasingly complex world.”

One anonymous survey participant offered: “Many ethical problems arise not because accountants do not know the right thing to do, but because they may face pressure to ignore procedures, approve unsupported transactions, or remain silent about irregularities.”