Risk Management and Ethical Perspectives in the Implementation of Artificial Intelligence (AI) in the Accounting Profession
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Published:
Dec 23, 2024
Keywords:
Artificial intelligence (AI), Ethics, Integrity, Responsibility Risk management
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Articles
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Abstract
The implementation of Artificial Intelligence (AI) in the accounting sector has provided significant opportunities to enhance efficiency and accuracy but also presents substantial ethical challenges related to integrity, accountability, and risk management. This study aimed to address three key questions: (1) How does AI impact integrity, data reliability, and the effectiveness of risk management in decision-making? (2) How are ethical responsibilities defined and applied in automated AI decision-making for risk mitigation? (3) What are the ethical implications of AI autonomy on risk management, human oversight, and the role of accounting professionals? A conceptual literature approach was employed to analyze these ethical challenges using Ulrich Beck's Risk Society Theory. The findings revealed that AI improved risk management efficiency; however, challenges such as algorithmic bias, lack of transparency, and privacy risks remained significant. Additionally, AI autonomy introduced ambiguities in accountability, necessitating human oversight and clear ethical frameworks. The study concluded that ethical AI implementation requires regulations supporting transparency, human supervision, and robust ethical guidelines to ensure alignment with professional values. These findings provide valuable insights for developing risk management and ethical practices in the application of AI within the accounting sector.
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How to Cite
Siregar, Z. A., & Hasanah, U. (2024). Risk Management and Ethical Perspectives in the Implementation of Artificial Intelligence (AI) in the Accounting Profession. Indonesia Auditing Research Journal, 13(4), 256–264. https://doi.org/10.35335/arj.v13i4.384
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Dzulhasni, S., Zakia, D., Puspitasari, E. Y., & Wijaya, L. R. P. (2024). Implikasi Etika pada Penggunaan Artificial Intelligence (AI) dalam Akuntansi Manajemen. Ambitek, 4(1), 136–143. https://doi.org/10.56870/ambitek.v4i1.136
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Guan, H., Dong, L., & Zhao, A. (2022). Ethical Risk Factors and Mechanisms in Artificial Intelligence Decision Making. Behavioral Sciences, 12(9). https://doi.org/10.3390/bs12090343
Guerrero, W. A., Camacho-Galindo, S., Guerrero-Martin, L. E., Arévalo, J. C., de Freitas, P. P., Gómes, V. J. C., Fernandes, F. A. D. S., & Guerrero-Martin, C. A. (2024). Impact of artificial intelligence on financial decision making: opportunities and challenges for business leaders. DYNA (Colombia), 91(233), 168–177. https://doi.org/10.15446/dyna.v91n233.114660
Hasanah, U. (2024). Privasi Data Dan Transparansi: Tantangan Etis Dalam Penerapan Artificial Intelligence (Ai) Di Bidang Akuntansi. Smart Goals: Jurnal Bisnis Digital Dan Manajemen, 1(1), 19–31.
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Jedličková, A. (2024). Ethical considerations in Risk management of autonomous and intelligent systems. Ethics and Bioethics (in Central Europe), 14(1–2), 80–95. https://doi.org/10.2478/ebce-2024-0007
Lehner, O. M., Ittonen, K., Silvola, H., Ström, E., & Wührleitner, A. (2022). Artificial intelligence based decision-making in accounting and auditing: ethical challenges and normative thinking. Accounting, Auditing and Accountability Journal, 35(9), 109–135. https://doi.org/10.1108/AAAJ-09-2020-4934
Lupo, G., Vo, B. Q., & Locke, N. (2024). Continuous automation approach for autonomous ethics-based audit of AI systems. In Trolley Crash: Approaching Key Metrics for Ethical AI Practitioners, Researchers, and Policy Makers (pp. 141–162). Elsevier. https://doi.org/10.1016/B978-0-44-315991-6.00015-7
Metwally, A. B. M., Ali, S. A. M., & Mohamed, A. T. I. (2024). Thinking Responsibly About Responsible AI in Risk Management: The Darkside of AI in RM. 2024 ASU International Conference in Emerging Technologies for Sustainability and Intelligent Systems, ICETSIS 2024, 1–5. https://doi.org/10.1109/ICETSIS61505.2024.10459684
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Perdana, A., Wang, T., & Arifin, S. (2024). Artificial intelligence in accounting: Ethical challenges and legal perspectives. In Digital Transformation in Accounting and Auditing: Navigating Technological Advances for the Future (pp. 321–345). Springer International Publishing. https://doi.org/10.1007/978-3-031-46209-2_11
Qureshi, N. I., Choudhuri, S. S., Nagamani, Y., Varma, R. A., & Shah, R. (2024). Ethical Considerations of AI in Financial Services: Privacy, Bias, and Algorithmic Transparency. 2024 International Conference on Knowledge Engineering and Communication Systems, ICKECS 2024. https://doi.org/10.1109/ICKECS61492.2024.10616483
Rosário, A. T. (2024). How artificial intelligence can help accounting in information management. Artificial Intelligence Approaches to Sustainable Accounting, 2022, 65–92. https://doi.org/10.4018/979-8-3693-0847-9.ch005
Shakdwipee, P., Agarwal, K., Kunwar, H., & Singh, S. (2023). Artificial Intelligence in Finance and Accounting: Opportunities and Challenges. In T. M., A. S., & J. A. (Eds.), Lecture Notes in Networks and Systems: Vol. 765 LNNS (pp. 165–177). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-981-99-5652-4_17
Sørensen, M. P. (2018). Ulrich Beck: exploring and contesting risk. Journal of Risk Research, 21(1), 6–16. https://doi.org/10.1080/13669877.2017.1359204
Thakre, P. N., Niveditha, P. K. P., Jain, P. P., Soni, D., & Vishwakarma, M. (2023). Exploring the Ethical Dimensions of AI in Decision-Making Processes. International Journal of Innovative Research in Computer and Communication Engineering, 11(10), 11325–11331. https://doi.org/10.15680/ijircce.2023.1110048
Vărzaru, A. A. (2022). Assessing the Impact of AI Solutions’ Ethical Issues on Performance in Managerial Accounting. Electronics (Switzerland), 11(14). https://doi.org/10.3390/electronics11142221
Vulpe, S.-N., Rughiniș, R., Țurcanu, D., & Rosner, D. (2024). AI and cybersecurity: a risk society perspective. Frontiers in Computer Science, 6. https://doi.org/10.3389/fcomp.2024.1462250
Zhang, C., Zhu, W., Dai, J., Wu, Y., & Chen, X. (2023). Ethical impact of artificial intelligence in managerial accounting. International Journal of Accounting Information Systems, 49. https://doi.org/10.1016/j.accinf.2023.100619
Bouchetara, M., Zerouti, M., & Zouambi, A. R. (2024). LEVERAGING ARTIFICIAL INTELLIGENCE (AI) IN PUBLIC SECTOR FINANCIAL RISK MANAGEMENT: INNOVATIONS, CHALLENGES, AND FUTURE DIRECTIONS. EDPACS, 69(9), 124–144. https://doi.org/10.1080/07366981.2024.2377351
Dzulhasni, S., Zakia, D., Puspitasari, E. Y., & Wijaya, L. R. P. (2024). Implikasi Etika pada Penggunaan Artificial Intelligence (AI) dalam Akuntansi Manajemen. Ambitek, 4(1), 136–143. https://doi.org/10.56870/ambitek.v4i1.136
Ekberg, M. (2007). The parameters of the risk society: A review and exploration. Current Sociology, 55(3), 343–366. https://doi.org/10.1177/0011392107076080
Ferrell, O. C., Harrison, D. E., Ferrell, L. K., Ajjan, H., & Hochstein, B. W. (2024). A theoretical framework to guide AI ethical decision making. AMS Review, 14(1–2), 53–67. https://doi.org/10.1007/s13162-024-00275-9
Guan, H., Dong, L., & Zhao, A. (2022). Ethical Risk Factors and Mechanisms in Artificial Intelligence Decision Making. Behavioral Sciences, 12(9). https://doi.org/10.3390/bs12090343
Guerrero, W. A., Camacho-Galindo, S., Guerrero-Martin, L. E., Arévalo, J. C., de Freitas, P. P., Gómes, V. J. C., Fernandes, F. A. D. S., & Guerrero-Martin, C. A. (2024). Impact of artificial intelligence on financial decision making: opportunities and challenges for business leaders. DYNA (Colombia), 91(233), 168–177. https://doi.org/10.15446/dyna.v91n233.114660
Hasanah, U. (2024). Privasi Data Dan Transparansi: Tantangan Etis Dalam Penerapan Artificial Intelligence (Ai) Di Bidang Akuntansi. Smart Goals: Jurnal Bisnis Digital Dan Manajemen, 1(1), 19–31.
Holmes, A. F., & Douglass, A. (2022). Artificial Intelligence: Reshaping the Accounting Profession and the Disruption to Accounting Education. Journal of Emerging Technologies in Accounting, 19(1), 53–68. https://doi.org/10.2308/JETA-2020-054
Holzhausen, M. (2024). Legal Accountability and Ethical Considerations for Outcomes Driven by Artificial Intelligence in Business Operations. Udayana Journal of Law and Culture, 8(1), 1–23. https://doi.org/10.24843/UJLC.2024.v08.i01.p01
Jedličková, A. (2024). Ethical considerations in Risk management of autonomous and intelligent systems. Ethics and Bioethics (in Central Europe), 14(1–2), 80–95. https://doi.org/10.2478/ebce-2024-0007
Lehner, O. M., Ittonen, K., Silvola, H., Ström, E., & Wührleitner, A. (2022). Artificial intelligence based decision-making in accounting and auditing: ethical challenges and normative thinking. Accounting, Auditing and Accountability Journal, 35(9), 109–135. https://doi.org/10.1108/AAAJ-09-2020-4934
Lupo, G., Vo, B. Q., & Locke, N. (2024). Continuous automation approach for autonomous ethics-based audit of AI systems. In Trolley Crash: Approaching Key Metrics for Ethical AI Practitioners, Researchers, and Policy Makers (pp. 141–162). Elsevier. https://doi.org/10.1016/B978-0-44-315991-6.00015-7
Metwally, A. B. M., Ali, S. A. M., & Mohamed, A. T. I. (2024). Thinking Responsibly About Responsible AI in Risk Management: The Darkside of AI in RM. 2024 ASU International Conference in Emerging Technologies for Sustainability and Intelligent Systems, ICETSIS 2024, 1–5. https://doi.org/10.1109/ICETSIS61505.2024.10459684
Murikah, W., Nthenge, J. K., & Musyoka, F. M. (2024). Bias and ethics of AI systems applied in auditing - A systematic review. Scientific African, 25. https://doi.org/10.1016/j.sciaf.2024.e02281
Perdana, A., Wang, T., & Arifin, S. (2024). Artificial intelligence in accounting: Ethical challenges and legal perspectives. In Digital Transformation in Accounting and Auditing: Navigating Technological Advances for the Future (pp. 321–345). Springer International Publishing. https://doi.org/10.1007/978-3-031-46209-2_11
Qureshi, N. I., Choudhuri, S. S., Nagamani, Y., Varma, R. A., & Shah, R. (2024). Ethical Considerations of AI in Financial Services: Privacy, Bias, and Algorithmic Transparency. 2024 International Conference on Knowledge Engineering and Communication Systems, ICKECS 2024. https://doi.org/10.1109/ICKECS61492.2024.10616483
Rosário, A. T. (2024). How artificial intelligence can help accounting in information management. Artificial Intelligence Approaches to Sustainable Accounting, 2022, 65–92. https://doi.org/10.4018/979-8-3693-0847-9.ch005
Shakdwipee, P., Agarwal, K., Kunwar, H., & Singh, S. (2023). Artificial Intelligence in Finance and Accounting: Opportunities and Challenges. In T. M., A. S., & J. A. (Eds.), Lecture Notes in Networks and Systems: Vol. 765 LNNS (pp. 165–177). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-981-99-5652-4_17
Sørensen, M. P. (2018). Ulrich Beck: exploring and contesting risk. Journal of Risk Research, 21(1), 6–16. https://doi.org/10.1080/13669877.2017.1359204
Thakre, P. N., Niveditha, P. K. P., Jain, P. P., Soni, D., & Vishwakarma, M. (2023). Exploring the Ethical Dimensions of AI in Decision-Making Processes. International Journal of Innovative Research in Computer and Communication Engineering, 11(10), 11325–11331. https://doi.org/10.15680/ijircce.2023.1110048
Vărzaru, A. A. (2022). Assessing the Impact of AI Solutions’ Ethical Issues on Performance in Managerial Accounting. Electronics (Switzerland), 11(14). https://doi.org/10.3390/electronics11142221
Vulpe, S.-N., Rughiniș, R., Țurcanu, D., & Rosner, D. (2024). AI and cybersecurity: a risk society perspective. Frontiers in Computer Science, 6. https://doi.org/10.3389/fcomp.2024.1462250
Zhang, C., Zhu, W., Dai, J., Wu, Y., & Chen, X. (2023). Ethical impact of artificial intelligence in managerial accounting. International Journal of Accounting Information Systems, 49. https://doi.org/10.1016/j.accinf.2023.100619
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