Challenges and Considerations of AI Adoption (Issues in Ethics, Privacy, Dependency)

AI tools are gradually finding a place in audits, tax work, and compliance reviews. Their appeal lies in speed and automation — but the risks, if ignored, can be operationally and reputationally damaging. This article examines the real-world challenges of AI in professional practice and argues for a disciplined, evidence-based adoption strategy — emphasising human supervision and strong procedural checks.

In June 2024, the ICAI published the results of an online survey on the use of AI within CA firms. Results showed that adoption is still limited, with most respondents expressing concerns about the cost of tools, unclear benefits, and a lack of AI knowledge. The response trend clearly indicates that the profession remains cautious—not because of resistance to technology, but due to practical concerns about reliability and control.

Consider this: an AI tool can scan and index over 1,000 judicial tax rulings in under five minutes. But if it confidently misapplies a case law and uses it in the wrong context for a client matter, the repercussions are real and potentially damaging. This is not just a technical flaw—it’s a professional liability.

The idea isn’t to avoid using AI, but to use it with clear limits and constant human oversight. It shouldn’t be a trial-and-error approach—AI must be handled like any high-risk tool