Navigating the future
The important role of AI policies in accounting firms
Kristy Gusick, Align Marketing Group | December/January 2025 Footnote
Editor's note: Updated February 10, 2025
Artificial intelligence is everywhere these days, isn’t it? From automating tasks to providing analytical insights, it’s making waves in the accounting world. Why should a CPA care about AI policies? Because leveraging AI responsibly can enhance your firm’s efficiency and effectiveness. But AI isn’t a simple plug-and-play — we need strong policies to make sure we’re using it right.
Let’s discuss why AI is important, why your firm needs an AI policy and how to create one.
The role of AI in accounting firms
AI is transforming the accounting profession in profound ways. AI tools can quickly sort through massive amounts of financial data, spot patterns and make accurate forecasts. It also reduces human error, especially in tedious tasks like reconciliation and compliance checks. By using AI, you can offer your clients even better service, such as more accurate financial forecasting, tailored advice for your clients and an acute focus on customer service.
Is it too good to be true? Not with a well-crafted AI policy in place. An effective AI policy addresses compliance requirements, establishes protocols for data protection and sets ethical guidelines for AI usage within the firm. An AI policy ensures we’re using tools in a wise way, building trust with your clients, all while maintaining the integrity of your firm.
The critical importance of an AI policy
So, why is an AI policy so crucial? First, we need to play by the rules. Different jurisdictions have their own rules about data privacy and AI. So, having a clear policy will help you adjust to these complexities, avoiding any potential legal hiccups.
Ethical considerations are equally important. Your policy ensures that your firm uses AI fairly, transparently and responsibly. For example, it ensures that AI algorithms don’t discriminate against certain groups and that AI decisions can be explained and justified. Building an AI policy that promotes integrity enhances your reputation and builds confidence among your clients.
To ensure all these considerations — legal compliance, data protection and ethical AI use — it’s critical to have a policy in place. An AI policy provides a solid framework that protects your firm and its clients and positions you as a forward-thinking leader in the industry.
Who should write the AI policy?
Creating and maintaining an AI policy is a team effort. First, senior management and leadership need to take the lead to set the tone and make sure the policy aligns with the firm’s goals. It’s also their job to champion the initiative and show everyone why it’s important. But what if they don’t have experience with AI? Here are options for leadership to gain familiarity:
- Learn the basics: Start by learning about AI through online courses and resources to build a solid foundation.
- Attend webinars and online workshops: Take advantage of free or low-cost webinars and workshops offered by industry experts and organizations.
- Consult experts: Hire AI consultants or attend industry seminars to gain a deeper understanding of how AI can benefit your firm.
- Engage in peer learning: Connect with peers in the industry who are currently implementing AI policies for real-world insights.
- Create a task force: Form a small team of interested and knowledgeable staff members to spearhead the initiative. This team can include IT, compliance and even enthusiastic employees from other departments.
- Subscribe to newsletters and blogs: Stay updated by subscribing to relevant newsletters and blogs focusing on AI, data privacy and compliance. These often provide bite-sized, current information that’s easy to digest.
Once you have a solid foundation, have IT and compliance folks jump in to handle the details. They can ensure the policy is technically sound and legally compliant, covering everything from data security to regulatory requirements.
Crafting your AI policy: Essential elements
We’re ready to build the AI policy now that we’ve identified who will champion it. Let’s break it down into manageable pieces:
- Ethical standards and practices: Define what ethical AI use looks like for your firm. This means making sure AI decisions are unbiased and you can always explain how the decisions were made.
- Compliance with standards: Stay compliant with all legal and regulatory standards. This means keeping up with changes in laws and regulations related to AI and data protection. Legal compliance protects you and boosts your credibility.
- Risk management strategies: Identify potential risks associated with AI use and establish protocols to mitigate them. This includes developing contingency plans for data breaches, system failures and other unforeseen issues. Being prepared makes crisis management more effective.
- Transparency and communication: Ensure your AI policy is communicated clearly to all stakeholders. Transparency in the details of how AI is used and governed within the firm builds trust among employees, clients and partners.
- Employee roles and responsibilities: Spell out who does what with the AI tools. Make it crystal clear who’s in charge of doing what. Specify who has access to AI systems and how they should be used.
- Continuous monitoring and evaluation: Implement regular checkups to ensure AI systems work correctly and ethically. This helps catch any issues early and keeps your AI running smoothly.
- Integration with existing policies and frameworks: Make sure your AI policy fits in with your other policies, like data privacy and security. This creates a cohesive framework that’s easy to follow and manage.
Put all these pieces together, and you have a rock-solid AI policy that protects the firm and enhances its efficiency and credibility.
Making AI a team effort
Remember that this isn’t a solo gig — everyone across the firm needs to collaborate, pitch in and share their expertise to make the policy robust and effective. A clear AI policy is necessary for any firm looking to harness AI’s potential while managing its risks. Every department, from HR to operations, has a stake in ensuring the policy is comprehensive and effective.
Kristy Gusick is the founder of Align Marketing Group, where she and her team specialize in helping accounting and financial advisory firms with their marketing and business development efforts. You may reach her at kristy@alignmarketinggroup.com or at 651-592-4662.
