Public company accountants and auditors have been using artificial intelligence (AI) for financial reporting matters largely without new regulatory requirements. At least for now, the SEC will not step in with prescriptive guidance, given the rapid speed of change.
However, the Securities and Exchange Commission’s (SEC) Office of the Chief Accountant (OCA), which has been closely monitoring the AI landscape within the financial reporting ecosystem, might put together a set of reminders for the appropriate use of AI, as it introduces a whole new set of risks, such as hallucinations, model drift, biases, lack of explainability around how AI generates outputs, and concerns about the data used by AI.
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