AI in Accounting & Finance: Governance, Risk and Compliance

Introduction and AI Opportunity in Accounting 

• Welcome, session objectives, and current state of AI adoption in the profession (drawing on 2026 ICAEW insights into trends, skills focus, and productivity potential)
• Overview of how AI drives innovation: automating data processing, reporting, audit support, tax compliance checks, and client insights
• Balancing excitement with responsibility: key risks (bias, hallucinations, confidentiality breaches) and the need for professional judgement

Due Diligence on AI Suppliers and Tools

• Critical questions to ask vendors: data handling/security, transparency of models, output reliability, compliance certifications, and alignment with ethical/professional standards
• Evaluating enterprise vs. public tools: protecting client confidentiality (e.g., never inputting real data into non-secure platforms)
• Practical checklists and red flags, informed by ICAEW best practices and ICO expectations on accountability

Regulatory Requirements and Guidance

• ICAEW expectations: ethical principles (integrity, objectivity, competence, confidentiality), PCRT guidance for AI in tax, and professional conduct updates
• ICO priorities: data protection compliance, fairness/transparency in AI, and accountability obligations
• EU AI Act overview and implications for accountants/SMEs: risk classifications (e.g., high-risk in credit/risk assessments), deployer obligations, transparency rules, and support measures like sandboxes/guidelines (phased application relevant in 2026)

Developing Organisational AI Guidelines

• Essential elements to include: acceptable use policies, oversight roles, documentation requirements, ethical frameworks, and integration with existing governance (e.g., risk registers, CPD)
• Tailoring for accounting contexts: client data protection, output review protocols, and human-in-the-loop for high-stakes work
• Examples from ICAEW resources and real-world firm approaches to ensure responsible adoption

AI DPIAs: When, Why, and How

• Triggers for conducting an AI-specific Data Protection Impact Assessment (DPIA): innovative/novel AI use, high-risk processing, or per ICO lists (often applicable to AI in professional services)
• Key contents: risk identification (bias, accuracy, rights impacts), mitigation strategies, stakeholder consultation, and ongoing monitoring
• Practical templates and steps aligned with ICO guidance and 2026 updates on agentic AI

AI Interactions with Emerging Technologies

• How AI complements blockchain (e.g., enhanced traceability, smart contract auditing, trustworthy ledgers in finance)
• Quantum computing horizons: potential disruptions to encryption/complex modelling and early preparation strategies
• Strategic considerations for accountants: where synergies create value and where risks amplify

Strengths and Limits of Machine Learning 

• Core strengths: pattern recognition, predictive analytics, efficiency in large datasets
• Practical limits: lack of true understanding, potential for errors/bias/hallucinations, dependency on training data quality
• Best practices for mitigation: always verify outputs, maintain professional scepticism, and use AI as an "auxiliary brain" (per ICAEW 2026 skills advice)

Interactive Scenarios, Wrap-Up, and Q&A 

• Real-world case studies/hypotheticals: applying AI in tax advisory, audit sampling, client reporting, or practice management while addressing risks
• Group discussion: sharing firm experiences, overcoming barriers, and planning next steps
• Key takeaways, resources (ICAEW GenAI Accelerator, ICO tools), and actionable roadmap for implementation
• Open Q&A on 2026-specific challenges (e.g., evolving guidance, agentic AI implications)

This schedule ensures a balanced, progressive structure: building knowledge from evaluation to governance, then tools and foresight, with strong interactive elements to reinforce partcipants learning. The content remains UK/accountant-centric, assuming basic digital familiarity while delivering immediate, implementable strategies amid 2026's rapid AI developments in the profession.

Redcliffe’s course trainer has over a decade of experience advising clients on data protection and founded Digital Law in 2014 to offer legal and compliance guidance to organisations operating in the digital space. The trainer works with clients across the UK, Europe, the Middle East, North Africa, Asia, and the United States on data protection, GDPR and cyber security compliance, along with e-commerce, website compliance, software licensing, AI, blockchain, privacy, and Freedom of Information Act matters. The trainer has advised clients in the creative, digital, and retail sectors, as well as working with clients in the banking, insurance, and financial services sectors who are engaged in the supply of goods and services using digital technology.

He is co-author of the Cyber Security Toolkit for The Law Society of England and Wales, a practical compliance guide for law firms, and is also co-author of a GDPR practical compliance manual for law firms. He regularly speaks at conferences and presents webinars and podcasts for various organisations. A regular international speaker, he has presented at LegalTechTalk, Nordic Privacy Arena, European Legal Security Forum, Lawyer2050 Conference, Legal Geek, and British Legal Technology Forum. He also produces the Digital Law Podcast.

The trainer is a member of the Expert Advisory Board for the Security, Privacy, Identity, Trust and Engagement Network Plus (SPRITE+) and is a past Chair of the GDPR Working Group of The Law Society of England and Wales. He is also a past Chair of the Law Society’s Technology and Law Committee.

Participants will leave with clear, implementable strategies to:

• Perform effective due diligence on AI suppliers, asking the right questions about transparency, security, model reliability, and professional alignment
• Meet regulatory requirements – what do the ICAEW, FRC, and the ICO look for? Including ICAEW ethical principles, competence, PCRT application to AI in tax, ICO data protection compliance and accountability, and the EU AI Act’s application, risk classifications, and deployer obligations relevant to accountants/SMEs
• Develop robust organisational AI guidelines, covering acceptable use, oversight, documentation, human review, and integration with firm policies
• Determine when to carry out an AI-specific DPIA and what it should contain, including risk identification, mitigation, and ongoing monitoring per ICO expectations.
• Understand AI’s interaction with other technologies, including blockchain (for traceability and audit enhancement) and quantum computing (future computational impacts)
• Appreciate the strengths and limits of machine learning (e.g., pattern detection, efficiency, no true comprehension, error risks), enabling accountants to use AI as a reliable "auxiliary brain" while preserving professional judgment

In the current 2026 landscape - with ICAEW highlighting AI as a core skill focus for the year, HMRC setting transparency expectations for AI in tax software, ICO reinforcing DPIA/accountability requirements for AI processing personal data, and the EU AI Act's high-risk/deployer obligations applying from August 2026 (relevant for cross-border clients or EU outputs) - attendance is essential for:

• Accountants or firms already using or piloting generative AI/agentic tools (e.g., for drafting reports, analysing datasets, automating compliance, or client insights), where failing to conduct proper due diligence, develop guidelines, or perform DPIAs risks ethical breaches, regulatory scrutiny, or professional liability

• Professionals in practices advising SMEs or EU-connected clients on AI adoption, as the EU AI Act (with SME support measures like simplified obligations and sandboxes) imposes deployer duties, transparency rules, and potential high-risk classifications in finance-related applications (e.g., credit assessments or automated decisions)

• Those responsible for firm-wide governance of AI - such as creating organisational guidelines, managing supplier risks, or ensuring human oversight - particularly if their practice has not yet formalized policies amid ICAEW's calls for enhanced competence and ethical safeguards

• Tax practitioners handling AI-assisted work, given the January 2026 PCRT guidance explicitly linking AI use to fundamental principles and warnings from cases where AI outputs led to errors or criticism

• Accountants seeking to close personal/professional skills gaps in a year where ICAEW predicts wider-scale adoption but stresses overcoming AI shortcomings (e.g., lack of true understanding) through verified, human-led application - non-attendance could leave individuals or firms lagging in compliance and competitiveness

This session is highly relevant for:

• Chartered accountants (ACA/ICAS/ACCA members) in practice, whether in small/medium firms, mid-tier practices, or larger firms, who handle day-to-day tasks involving data analysis, automation, or client deliverables where AI can enhance efficiency

• In-house finance professionals and accountants in corporate, commercial, or advisory roles evaluating or deploying AI for internal processes (e.g., financial forecasting, compliance checks, or risk assessment)

• Tax specialists and advisors navigating AI's application in tax work, where recent PCRT guidance (updated January 2026) requires applying fundamental ethical principles to AI tools to avoid risks like inaccurate outputs or breaches of professional conduct

• Practice leaders, partners, and compliance/responsible persons (e.g., those overseeing firm policies, risk registers, or CPD) responsible for governing AI use, supplier due diligence, and alignment with ICAEW/ICO expectations

• Audit and assurance practitioners interested in AI's role in sampling, anomaly detection, or reporting, especially in light of FRC guidance on AI in audit and the profession's shift toward agentic AI beyond experimentation

The content assumes basic familiarity with digital tools and focuses on actionable, UK-centric strategies amid 2026 trends: widespread experimentation moving to governed deployment, skills gaps in AI literacy, and pressure to upskill while addressing limitations like bias, hallucinations, and over-reliance

This course is concise and actionable - crafted for accountants and finance professionals eager to leverage artificial intelligence for enhanced productivity and client service delivery, while ensuring full compliance with ethical standards, data protection rules, and emerging regulations as of February 2026.

This practical session explores best practices for responsibly identifying, evaluating, and implementing AI systems in accounting workflows, from routine automation and data analysis to advanced advisory support. It addresses the profession's rapid shift toward governed AI adoption in 2026, as highlighted by ICAEW's focus on skills development, overcoming AI limitations (such as hallucinations and bias), and ethical integration; the January 2026 PCRT topical guidance on applying fundamental principles to AI in tax work; HMRC expectations for transparent AI in tax software; ICO guidance on AI and data protection (including fairness, accountability, and DPIA requirements for high-risk or innovative processing); and the EU AI Act's phased obligations (with high-risk deployer duties effective from August 2026, plus SME-friendly measures like simplified procedures and innovation support).

Delivered interactively with real-world examples, checklists, and discussion opportunities, this course provides the regulatory certainty and risk management toolkit needed to adopt AI confidently and ethically - turning it into a competitive advantage without compromising integrity, confidentiality, or compliance in today's fast-evolving professional landscape. Ideal for those moving beyond experimentation to practical, governed deployment in practice or in-house roles.