Worst AI Risk-Management Practices

Joel Lanz, CPA, CISA, CISM, CISSP, CFE

Artificial intelligence (AI) is not a philosophical discussion, business dream, or science fiction for CPAs—whether they are risk managers, auditors, or financial executives. Unlike many business development or operational executives who dream of expanding opportunities and efficiencies, CPAs and other financial professionals recognize and respect the accompanying threats that could just as quickly hinder the organization's survival and stakeholder value. The concern is not so much the macro threats that impact society at large, over which an organization has little control, but the micro threats that require the navigation of governance and management to facilitate the achievement of organizational objectives. Like previous introductions of new technologies, the pressure of individual business lines to execute and potentially obtain new gains may exceed the prudence of managing enterprise-wide risks and protecting existing stakeholder value. And given CPAs' responsibilities, a process to manage and audit these risks is needed.