Watch our new AI mini-series on YouTube
ACCA has launched a three-part AI mini-series which cuts through the hype and demystifies what artificial intelligence actually means for accountants today.
The second episode focuses on the framework, structure and safeguards that need to be in place before a firm puts AI to work. It asks not just what AI can do, but how it can be used responsibly. The discussion centred around two primary areas:
- regulatory implications: data control sits at the heart of this; understanding where client information goes, who can access it and how it is protected, alongside the ethical use and transparency expected of us under the Professional Conduct in Relation to Taxation (PCRT). Being open about their use is fast becoming part of acting professionally
- the practicalities: a recurring theme was the engagement letter: making sure that AI use is properly reflected in the terms we agree with clients, including how it is referenced within standard terms and conditions and how liability to third parties is handled. Professional indemnity insurance is key here and practitioners need to ensure they protect themselves properly. Good governance isn't a barrier to using AI, it's what allows a firm to use it with confidence.
Throughout, the aim is to give members a clear sense of the guardrails that make AI adoption safe, compliant and defensible.
Useful ACCA and regulatory guidance
For members who want to explore the regulatory points mentioned in this episode, the following guidance is essential reading:
- Professional Conduct in Relation to Taxation (PCRT) AI guidance – found on the PCRT page (the last helpsheet on the list)
- Financial Reporting Council AI guidance for audit
- CCAB statement on ethical use of AI
- Engagement letters – the tax practitioners' engagement letter updated in March 2026 references AI use, including the PCRT guidance (page 22), use of AI within standard terms and conditions (page 150) and limitation of liability to third parties (page 158).
Watch episode 2 – Ethical and appropriate use of AI in accounting
Catchup on episode 1 if you missed it: Demystifying AI in accounting
