Navigating Ethics in AI-Enhanced Accounting
Syed Sajid Hussain, Payal Nangia Sharma · 2025
This chapter examines the ethical implications of artificial intelligence (AI) applications in accounting. Profoundly changing the AI technological landscape in the accounting process for professionals is also posing new ethical challenges offered by AI. This chapter delves into such ethical dilemmas and offers a systematic framework for the responsible use of AI in accountancy. This chapter uses a narrative literature review to identify extant ethical frameworks and standards regarding AI in the accounting profession. This review explores key ethical domains – transparency, data privacy, and accountability – and their context-specific manifestations and impacts on AI-augmented accounting. This chapter describes several of the most fundamental ethical risks, including the “black box” problem of AI systems, potential for algorithmic bias, and impacts on decision-making transparency. It also highlights the impact of AI on jobs in accounting telling how a balanced a mix is required along with hiring management which values human oversight. These findings draw attention to the essential role of regulation and professional conduct in ensuring that AI is used ethically in accounting. The findings can raise the awareness of accounting professionals and policymakers about ethical challenges in using AI technology and serve as guidance for executing AI responsibly. They also use ethical due diligence in accounting systems where AI is applied to help professionals gain public trust. This chapter lends a voice to the emerging discourse on AI Ethics towards justice by filtering existing approaches through themes of accountability, transparency, and complexity that may resonate better within contexts of accounting practice. This analysis sheds light on such ethical complexities, which can be helpful for accounting practitioners, policymakers, and academic researchers alike in navigating them using AI established in financial services.