Turn AI Risk into a Strategic Advantage

Discover how to treat AI like a team member, validate its work, and integrate it safely into your business processes.

AI governance isn’t optional.

That’s the key message from the latest Innovation Insights episode, where host Donny Shimamoto, CPA.CITP, CGMA, sits down with Jason Pikoos and David Wood—two contributors to the new Generative AI Governance Framework—to explore how organizations can adopt AI responsibly without stalling innovation.

Why AI Needs Governance
Generative AI offers unprecedented possibilities for accounting and finance—from automating tasks to uncovering new insights. But, as Pikoos notes, “It’s not just about what AI can do, it’s about how responsibly we use it.” Governance, he says, is “good hygiene,” applicable whether you’re a solo practitioner, a nonprofit, or a Fortune 500 company.

Beyond Checklists: A Flexible Framework
Wood explains that the framework is not a rigid checklist but a set of 69 control considerations organized into key areas like people, processes, and bias risk. Organizations can scale these considerations to fit their size and context. As Shimamoto emphasizes, integration with existing IT policies is critical—no more isolated “AI policies” that ignore broader governance practices.

Unique Risks in the AI Era
AI brings unique challenges. Hallucinations—fabricated or inaccurate responses—are the most visible risk. But banning AI is no solution, says Pikoos. “Treat AI like a junior team member,” he emphasizes. “Review its work, validate results, and know when accuracy is critical.”

Wood adds that many organizations don’t even realize where AI is embedded—in ERP systems, word processors, or client platforms—creating hidden risk exposure.

Human and Social Considerations
Unlike many governance models, this framework addresses human, ethical, and social impacts. That means thinking through how AI adoption affects jobs, reskilling needs, and culture. As Pikoos points out, leadership must clearly communicate why they’re adopting AI—whether to reduce costs, expand services, or increase capacity.

Continuous Improvement
Governance isn’t “set it and forget it.” Both AI technology and human use evolve rapidly. Wood highlights the “jagged technological frontier,” where new versions improve in some areas but may regress in others. Regular reassessment is essential.

A Growth Opportunity for Firms
Shimamoto sees a clear advisory opportunity: firms can implement the framework internally, then help clients do the same—expanding their value proposition beyond compliance into trusted AI strategy.

Where to Start

• Download the framework at genai.global.
• Assess your current state using the maturity model.
• Prioritize your top risks and set a strategy.
• Integrate governance into culture and training.
• Reassess regularly as tools and uses evolve.

“AI isn’t here to replace you—but someone using AI effectively could. Governance is how you make sure you’re the one in control.” – Jason Pikoos

🎧 Watch the latest episode now.