AI Risks in Accounting: What CPAs Need to Know 

“Privacy as we know it might already be gone.”  

Artificial intelligence is rapidly integrating into accounting workflows, but with great automation comes great risk. In this episode of Accounting ARC, Donny Shimamoto, CPA.CITP, CGMA; Byron Patrick, CPA.CITP, CGMA; and Liz Mason, CPA, explore how AI’s increasing capabilities pose unprecedented risks to data security, compliance, and financial markets. 

AI Models: The Black Box Problem
Traditionally, humans programmed software with clear logic and intent. Today, however, AI can write its own code, creating a black box effect—where even developers don’t fully understand how or why AI makes certain decisions. This raises huge concerns for accountants tasked with auditing and validating financial data. 

Cybersecurity and Deepfake Risks
Patrick, CEO of VERIFYiQ and co-founder and educator for TB Academy, stresses that SOC reports and compliance audits—long-standing tools for vetting technology—aren’t keeping up with AI’s capabilities. Deepfake scams and AI-driven fraud now make it easier than ever to impersonate executives and manipulate financial decisions. 

Privacy and Data Exploitation
Mason, CEO of High Rock Accounting, highlights an even bigger issue: the erosion of digital privacy. AI models can process massive amounts of qualitative data, analyzing user behaviors, preferences, and biases to shape public perception. This goes beyond targeted ads—it’s about controlling narratives and economic outcomes. 

Accountants as Risk Managers
Shimamoto, founder and managing director of IntrapriseTechKnowlogies LLC and founder and inspiration architect for the Center for Accounting Transformation, urges accountants to step up as risk managers in this AI-driven world. Professional skepticism, ethical standards, and critical analysis of data sources are now more crucial than ever. 

AI is not inherently bad, but its rapid expansion demands oversight. Accountants must stay informed, ask the right questions, and push for stronger accountability measures to protect both businesses and the public. 

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