Q&A: ACCA's Narayanan Vaidyanathan on their new AI training course

In June, the ACCA and CISI (Chartered Institute of Security and Investment) partnered to launch a new qualification, the Certificate in Artificial Intelligence, in order to meet this demand and equip the accountants with future-proof skills in AI.

Since the launch, more than 3,500 professionals, seven financial services regulators and four central banks across more than 50 countries have registered for the CISI Certificate in Ethical AI.

Accountancy Age sat down with the ACCA’s head of policy development, Narayanan Vaidyanathan, to understand more about the qualification and the need for skills in the area, as well as what role  organisations like ACCA should play.

How do you foresee AI transforming the accounting profession over the next five to ten years?

AI will undoubtedly influence the way that accountants work, changing their roles and enabling them to deliver even greater value to their organisations. Empowered by AI tools, accountants will be able to extract actionable insights from a wider array of data sources. This will support better decision-making, more optimal operations and improved customer experiences.

AI is a potential game-changer for our world because it’s such an incredibly powerful technology. But, when using AI, we all have a responsibility to get it to do what it should – not just what it can.

Can you elaborate on the specific ethical challenges that AI poses to the accounting industry and why it is crucial for accountants to develop skills in this area?

At ACCA, we believe that the accountancy profession – which has a long-standing commitment to ethical standards – can play a critical role here. Finance professionals could be involved with ensuring that AI models are used in a manner that satisfies compliance and ethical obligations, as part of, for example, the assurance of AI systems.

What would that look like in practice? For starters, it would involve an assessment of the proposed AI tools. Will they help the organisation to deliver its objectives, and will they bring genuine benefits to customers and employees? Ethical accountability also involves ensuring that the workforce use and share recognised best practices. In other words, are they using the right AI tools, for the right business reasons, in the right way?

Ethical accountability will require accountancy professionals to establish strong relationships with their organisation’s technology teams to effectively manage associated risks. That is also true in the case of data governance. The uncertain nature of AI initiatives also presents challenges, and from an investment perspective this means continual oversight of related costs and benefits.

What motivated ACCA to collaborate with CISI specifically for the Certificate in Ethical AI, and how did this partnership come about?

ACCA is a global organisation with members operating across a range of sectors, including with a significant presence in Banking, Financial Services and Insurance (BFSI). CISI of course has a strong focus in this sector, and there is a complementarity between the organisations.

BFSI has been an enthusiastic adopter of AI, has the budgets to develop complex AI models, and operates in regulated industries affecting the lives of citizens, where mistakes can have both societal and financial implications. Therefore ACCA was of the view that this course as part of the Lord Mayor’s initiative was an excellent opportunity to support ethical AI adoption in an important sector of the economy.

Why do you believe it is important for industry bodies like ACCA to take the lead in ethical AI training rather than individual firms developing their own programs?

As a member organisation, ACCA has a duty to ensure that all those in our membership are leading examples of the profession, no matter what company or sector they work in.

Industry bodies should lead the way in training, especially in ethical AI, as these organisations are not biassed by business goals or stakeholders and can instead focus on the core facts and obligation to do the right thing. Industry bodies are also more inclusive and have a long-term perspective.

Training is not restricted to one specific company, and programmes can be built to deliver the most effective industry-wide results for finance professionals.

What are the key components and learning outcomes of the CISI Certificate in Ethical AI that ACCA members will benefit from?

By completing this course, ACCA members will be able to:

• Explain how AI can be developed in ways benefitting society
• Understand the relevance of ethical codes in the deployment of AI
• Demonstrate the importance of risk management when considering AI
• Understand the human aspect of managing AI systems

How will this certificate program be integrated into ACCA Learning, and what support will be provided to members undertaking this certification?

The certification has already been added to the ACCA Learning platform, where it can be accessed by any member who is interested. While not a compulsory module to attaining ACCA membership, it is essential for any finance professional who wants to ensure their AI skills are up to speed with the latest developments.

As with all our learning modules, this has been written by experts for finance professionals to ensure the highest quality of education.

Beyond the Certificate in Ethical AI, are there any other initiatives or partnerships ACCA is pursuing to further support the ethical use of AI in the financial services sector?

ACCA’s Policy and Insights team are always looking into the role of AI amongst finance professionals.

On 18^th July 2024, ACCA will be hosting a specific conference on AI in finance, and we have also released the first of our AI Monitor series, which focused on the role of leadership in managing the risks of AI while building trusts throughout an organisation.

This series will be continued throughout the rest of the year. On matters related to ethical AI, ACCA is also working on a policy paper on the assurance of AI systems.

How does ACCA plan to measure the success and impact of this collaboration with CISI on its members and the wider industry?

Our members have repeatedly raised AI as an area of interest for their own development over the past few years, so the partnership with CISI on this certification was a natural next step. We would hope to see ACCA members continuing to drive the conversation around the ethical use of AI in finance and accountancy, setting the standard across all sectors for best practice and implementation of AI technologies.

In your opinion, what are the most significant ethical risks associated with AI in accounting, and how does the certificate address these risks?

While the opportunities presented by AI are immense, so are the risks. These include:

• Explainability and transparency. AI systems are complex and difficult to interpret. This can challenge understanding and limit applications.
• Bias and discrimination. Biassed training data can result in AI systems inadvertently perpetuating and amplifying societal prejudices.
• Privacy concerns and security risks. AI systems can collect and analyse large amounts of data – data that could be targeted and harnessed by cyber attackers unless enhanced security measures are in place.
• Legal and regulatory challenges. Legally, there is a huge question mark around liability in AI systems. Additionally, the uncertainty around future regulatory frameworks makes it hard for organisations to plan for the implementation of AI initiatives.
• Inaccuracy and misinformation. AI systems cannot necessarily discern the truth and can generate false information in the form of ‘hallucinations’.

How do you think the skills gained from this certification will give ACCA members a competitive edge in the job market?

AI is a skill in demand, and this is recognised by our members. Our recent Talent Trends survey revealed that two thirds of UK accountants are optimistic about the role of AI in accountancy, and almost three quarters (71%) are keen for more training on how to best use AI.

The UK’s finance professionals want to understand and utilise AI effectively, and undoubtedly want to ensure they have the best skillset possible to retain a competitive advantage and support clients as best they can as technology and trends evolve. The ACCA/CISI partnership certification demonstrates a commitment by both organisations to helping members get the skills and training they want.

What has been the initial reaction or feedback from ACCA members about this new learning opportunity, and how are you planning to keep them engaged?

We’re pleased to report positive initial feedback from ACCA members regarding the new Ethical AI certificate, receiving hundreds of early sign ups. Members value continuous learning to stay ahead of industry changes, and this new offering resonates with that need. We’ve seen this positive sentiment reflected in the early stages of our promotional campaign, including encouraging comments on our social media posts.

How do you plan to gather and incorporate feedback from members who complete the certificate to continually improve the program?

We have a multi-pronged approach to gather and integrate member feedback for our continuous learning resources:

• Member surveys: We conduct regular surveys to ensure member feedback remains a central focus in our decision-making processes.
• Member forums: We actively monitor various member forums where they share feedback, including discussions at member events.
• Regular content updates: As with all our continuous learning resources, we’ll prioritise maintaining the programme’s knowledge relevance to meet the current and future needs of our members and future members.
• Feedback-driven improvements: Any identified gaps or member suggestions will be addressed collaboratively with our partner. This may involve updating existing modules or adding new learning content to keep pace with the evolving topic.