Ignore AI at your peril

While AI continues to captivate every business sector, the high interest environment is taking its toll on the economy — even Disney's Mickey Mouse is suffering. Yet economic uncertainty and a volatile stock market haven't stopped consumers spending freely and in the process, racking up record levels of credit card debt.

Have we weathered the worst, or will the U.S. hit an economic wall, despite the promise of AI? Read on to learn the latest. - Bianca Prieto, Editor

In Today's Newsletter:
⚫ British accountants love AI. Will the U.S. benefit as much?
⚫ U.S. consumers still love their credit cards (a lot).
⚫ Bank CEO warns consumers could suffer without a rate drop.
⚫ Chief audit executives ignore anything AI at their peril.
- written by Paul McCormack

British accountants are all-in on AI’s potential

Are the British onto something? According to recent research conducted by a U.K.-based think tank, accountants predict that widespread AI adoption could add £2 billion ($2.55 billion) to the U.K. economy and create 20,000 jobs, though challenges like data quality and skills shortages remain. Firms using AI expect faster growth and job creation compared to those that do not. Read more in Computer Weekly. 

 Image Credit: Adobe Stock

🎙 The current state of the accounting profession

"Human capital is an asset, not an expense." - Tom Hood

A dynamic panel featuring host Rob Brown with industry experts David Osborne, Katie Thomas and Tom Hood explores the accounting profession's present landscape and future outlook. The quartet exchanges views on the pressing issues confronting accountants, such as workforce scarcity, technological upheaval and evolving client demands. Time: 48 minutes (Accounting Influencers)

The level of credit card debt in the U.S. according to the Federal Reserve Bank of New York (The Street)

• Fishy Finance: Ex-Mozambique Minister Snared in 'Tuna Bonds' Scandal
• Bank of America: Consumers Face Risk if Rates Stay
• Red Alert: Household Debt Rises, Delinquencies Surge
• High Stakes: Youngest Fortune 500 CFO Risks Family's Empire

AI-related risks aren't going away

The rapid rise and adoption of generative AI (GenAI) requires more audit coverage for potential risks, according to a survey by Gartner, Inc.

In August 2023, Gartner surveyed 102 chief audit executives (CAEs) to assess the importance of auditing 35 different risks. The six risks identified as likely to see the most significant increase in audit coverage include strategic change management; diversity, equity, and inclusion; organizational culture; AI-enabled cyber threats; AI control failures and unreliable outputs from AI models

Since many CEOs and CFOs view AI as the most impactful technology for their organizations, any lack of confidence among CAEs in auditing AI-related risks could hinder their ability to fulfill stakeholder expectations. (Gartner)

The Net Gains is your one-stop shop for fresh, FREE accounting insights. I'm Bianca Prieto, your editor, and I'm excited to build this community with you.  

We'll be diving deep into industry updates, from tax strategies to the power of technology. What are your thoughts on today's newsletter? Am I missing something? Did you learn something valuable? Let's shape this newsletter together — email me and let me know!

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