Artificial intelligence (AI) is not a philosophical discussion, business dream, or science fiction for CPAs
whether they are risk managers, auditors, or
The article from The CPA Journal, titled "Worst AI Risk Management Practices," discusses the pitfalls and poor practices in managing risks associated with artificial intelligence (AI) in business environments. It highlights several common mistakes organizations make, such as over-reliance on AI without understanding its limitations, neglecting to establish robust governance frameworks, and failing to integrate AI risk management into the broader enterprise risk management (ERM) strategy. The piece points out the dangers of not continuously monitoring AI systems for biases, errors, or security breaches, and the lack of transparency in AI decision-making processes which can lead to trust issues and regulatory non-compliance. Additionally, it critiques the inadequate training of staff on AI technologies, the absence of ethical guidelines, and the failure to prepare for AI-specific risks like data poisoning or adversarial attacks. The article emphasizes the need for a proactive, informed, and ethical approach to AI risk management to mitigate potential negative impacts on businesses, stakeholders, and society at large.
Science & Technology
Tue, December 31, 2024 
