The British Standards Institute (BSI), a Royal Charter organisation that issues technical standards for businesses and professionals, has published what it describes as the “world’s first international standard” for the use of AI in audits.
The advent of generative AI technology has presented accounting professionals with a powerful tool that, when deployed well, can massively improve the efficiency and quality of manual processes like audits.
Despite the clear benefits of using AI for such tasks, the BSI has warned a lack of standards could create a “wild west” within the regulated service that could compromise the quality of audits and the integrity of private data.
The new standard, which will officially launch at the end of July, aims to address these concerns by setting rigorous criteria for assessing the quality and governance of AI audits.
The BSI said this marks a critical step in defining what safe and responsible AI should look like in the professional world.
Arkadiy Ukolov, chief executive of automated document processing and compliance firm Ulla Technology said: “The UK is crying out for AI oversight from government and the regulators to combat the AI wild west that is taking over the business world.
“Too often, staff are sharing unauthorised data on third-party AI systems, which breaches privacy and compliance protocols, exposing confidential information.
“For AI to be truly fit for purpose, it must be built on privacy-first foundations, where data remains under the user’s control and is processed securely within an enclosed environment. This must be supported by robust governance frameworks to ensure ethical and safe AI usage, protecting data at all stages.”
Last month the Financial Reporting Council (FRC), an independent regulator responsible for auditors, accountants and actuaries, released voluntary guidance for the use of AI in audits.