ACCA Strategic Professional · Strategic Business Leader · Machine learning, AI and robotics
Marlow Insurance's finance director, a professional accountant, is asked to sign off an AI-generated forecast used in a bond prospectus. She does not understand how the model works and cannot validate its assumptions. Which professional response is most appropriate?
She should withhold sign-off until the model is understood, validated and challenged, using specialist support where necessary. Professional competence and due care mean accountants cannot rely blindly on AI output, which depends on data and assumptions. A disclaimer or blanket ban would not meet professional obligations.
- ASign off, because AI outputs are objective and reliable
- BSign off but add a disclaimer blaming the data science team
- CRefuse to sign off until the model has been adequately understood, validated and challenged, seeking expertise if necessaryCorrect
- DRemove all AI from the company's reporting processes
Explanation
Professional competence and due care require accountants to understand and challenge the tools they rely on, and they should seek specialist help where needed. AI outputs are not inherently objective, as they depend on data and assumptions. A disclaimer does not remove personal responsibility, and removing all AI is disproportionate.
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