In today’s hyperconnected world, the proliferation of data and artificial intelligence (AI) are powerful tools, but they’re also potential liabilities. Every client interaction, financial transaction, and digital footprint generates information – much of it sensitive and personally identifiable. There is potential for significant negative consequences if developed and deployed without careful human and ethical oversight.

For accountants, this flood of data represents a new opportunity to provide insight, efficiency, and value. 

The winter 2025 issue of NewsAccount, now available online, explores how CPAs can manage data ethically, securely, and in compliance with an evolving landscape of privacy laws and professional standards.

Ryan Orton, CPA, partner of AI and Data Services for RubinBrown, says that ethical data and AI stewardship begins with awareness. CPAs must understand how data is collected, stored, shared, and used within their own organizations, their clients’ organizations, and by external partners. They must also question whether consent has been properly obtained, whether data is being retained longer than necessary, and whether algorithms used in financial modeling or risk assessment introduce unintended bias. 

Within the realm of data ethics, consent gaps represent one area of concern. “Your data can be repurposed so far from its original purpose without your consent,” Orton notes. “It’s shocking how many places your information is available. Once it has been sold, it can be used for something totally different than what it was originally captured for.”

To navigate this and other risks, principles such as informed consent, transparency, privacy protection, accountability, fairness, and data minimization should guide how information is gathered and used. 

And Then There’s AI

The use of AI comes with its own set of risks and preventative measures, many of which Orton outlines in the NewsAccount cover story.

Key issues of which to be aware include:

• Lack of opacity and accountability: Don’t let AI operate in a vacuum or take its result as the final word. 
• Over-reliance on and bias toward automation: Relying on AI without adequate professional judgment puts you at risk, Orton says. “AI output looks authoritative. People miss contextual factors and errors the system didn’t capture.”
• Perpetuation of historical biases: AI learns from historical data, which means it encodes past biases and inequities. In the article, Orton offers several steps to help mitigate bias.

Create Control Systems

Implementation – and awareness – of strong systems of control is essential to ethically and effectively managing AI use. Established frameworks like COSO offer a foundation for governance, while evolving guidance from organizations such as the AICPA helps firms adapt to new regulatory and ethical expectations. Oversight should extend beyond IT departments to include boards, audit committees, CEOs, and CFOs. 

Orton emphasizes the importance of Human in the Loop (HITL) — ensuring that professional judgment remains central to decision making. AI can accelerate work, but it can’t replace industry context, skepticism, or ethical reasoning. 

CPAs can put steps in place to help mitigate the risk of using AI in the business realm by:

• Having a governance process: This could be a technical board, a council, or even a single person who is deeply embedded in the process.
• Using common sense: Ask reasonable questions.
• Having a human in the loop: Don’t blindly accept what AI is telling you.

When it comes to the ethics of handling data and AI, CPAs are uniquely positioned to lead by example, thanks to their training in governance, risk management, and regulatory compliance. 

For a deeper dive into how to implement practices and protocols to effectively manage data and AI ethics, check out the full article, “Responsibly Navigating Data and Artificial Intelligence in Accounting,” in the winter 2026 issue of NewsAccount. 

COCPA members can earn free CPE credit for NewsAccount readership. Take advantage of the opportunity to earn free CPE while staying on top of the latest news from the profession. Click here to learn more and register.

Looking for an opportunity to connect with your COCPA colleagues to discuss technology, its impact on the accounting profession, and future trends? Learn more about the COCPA Technology Users Group.