In this highlights episode of Future Finance, hosts Paul Barnhurst and Glenn Hopper discuss generative AI in finance and accounting with Jason Pikoos. As industries adopt AI for efficiency and innovation, they must also understand the challenges like audit readiness, compliance, and explainability. Our guest, Jason Pikoos, unpacks the complexities of using AI in financial operations and what it takes to align emerging technologies with rigorous audit standards.

This episode focuses on the need for finance professionals to stay informed and proactive as the industry grapples with the opportunities and risks of AI. AI Technology continues to revolutionize finance, but auditors face an uphill battle in adapting to this unpredictable and rapidly evolving technology. The black-box nature of AI, combined with its non-deterministic outputs, challenges traditional auditing methods that rely on consistency and explainability. Without clear guidance from regulatory bodies like the PCAOB, companies are left navigating a landscape where the rules are yet to be written.

Expect to Learn

• Why generative AI presents unique challenges for audit and compliance.
• How companies can implement AI while staying audit-ready and minimizing risk.
• The importance of “reperformance” and ongoing validation for AI systems.
• Real-world examples of companies navigating AI implementation in finance.
• Predictions for the future of audits, including real-time monitoring powered by AI.

Jason Pikoos emphasizes the importance of cautious adoption, ongoing validation, and strategic planning to bridge the gap until formal frameworks are established. While the potential of AI to transform audits is undeniable, the journey will require auditors, companies, and regulators to work together to define how trust and compliance are maintained in this new era.

Follow Jason:

LinkedIn - https://www.linkedin.com/in/jason-pikoos/

Connor Groups - https://p.connorgp.com/l/

Governance Framework - https://uploads-ssl.webflow.com/

Join hosts Glenn and Paul as they unravel the complexities of AI in finance:

Follow Glenn:

LinkedIn: https://www.linkedin.com/in/gbhopperiii

Follow Paul:

LinkedIn: https://www.linkedin.com/in/thefpandaguy

Follow QFlow.AI:

Website - https://bit.ly/4i1Ekjg

Future Finance is sponsored by QFlow.ai, the strategic finance platform solving the toughest part of planning and analysis: B2B revenue. Align sales, marketing, and finance, speed up decision-making, and lock in accountability with QFlow.ai.

Stay tuned for a deeper understanding of how AI is shaping the future of finance and what it means for businesses and individuals alike.

In Today’s Episode:

[00:09] – Challenges of Using AI in Auditing

[01:11] – Current Gaps in Audit Guidance for AI

[02:13] – The Role of Reperformance in AI Validation

[03:28] – Balancing AI Adoption with Audit Risks

[04:20] – Lessons from Real-World AI Implementation

[06:15] – The Future of Finance and AI

[06:32] – Final Thoughts and Key Takeaways