Risk Management Show AI Risks in Accounting: Avoid These Common Pitfalls with Mike Whitmire
Apr 15, 2025
Join Mike Whitmire, CEO of FloQast, as he navigates the complexities of AI risks in accounting. He shares his evolution from auditor to tech leader and discusses the peril of AI hallucinations and the shortcomings of generic tools. Mike emphasizes the necessity for tailored solutions to ensure reliability in financial reporting. He highlights the changing role of accountants, the increasing talent gap, and provides practical strategies to adapt to AI innovations while maintaining accuracy in workflows.
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Mike's Journey to FloQast
- Mike Whitmire started as an auditor at Ernst & Young during the Sarbanes-Oxley implementation period.
- He then helped a pre-IPO software company implement risk controls and later founded FloQast to solve challenges in the month-end close process.
AI Risks in Accounting Automation
- AI risks in accounting relate mostly to automation work that feeds financial statements, needing perfect accuracy.
- Large language models pose risks of hallucination and errors in accounting unless carefully controlled and audited.
AI Regulation Needs Collaboration
- Collaborate between private firms and regulators to draft AI use guidelines in accounting.
- Monitor evolving regulations and frameworks as AI technology rapidly advances in accounting.