FloQast Earns New AI Ethics Certification

Accounting platform FloQast recently announced it has earned ISO 42001 certification to ensure that its AI-powered solutions are responsible and ethical. The certification ensures that both the configuration and control of FloQast’s solutions can handle sensitive financial data responsibly.

The certification, derived by the International Organization for Standards, is designed “designed for entities providing or utilizing AI-based products or services, ensuring responsible development and use of AI systems” and “specifies requirements for establishing, implementing, maintaining, and continually improving an Artificial Intelligence Management System (AIMS) within organizations.” It gives organizations a specific framework to help them oversee AI development and use it ethically, transparently, and in accordance with international best practices.

In order to receive the certification, FloQast had to ensure that all stakeholders were engaged, properly trained, and made aware of best practices. It also had to pass internal and external audits, implement compliance processes, and establish communication channels for continuous improvements.

FloQast opted to earn this certification because it has AI embedded throughout its platform. The solution offers AI-powered features like overhauling manual tasks and reconciliations through its Advanced Workflow Solutions, as well as other GenAI tools like checklist creation, variance explainers, and financial close automation tasks.

“AI is evolving rapidly, and while many companies are pushing products to market, it’s crucial to approach innovation with care. At FloQast, we’ve taken a proactive and measured approach, building AI solutions that meet SOX audit standards and align with accounting best practices. We understand the risks of applying AI to financial data, which is why we focus on compliance, security, and accountability. Our ISO 42001 certification reflects our commitment to responsible AI development, giving customers confidence to embrace AI as a transformative tool for their accounting teams,” said FloQast CEO and co-founder Mike Whitemire.

What This Means for SAPinsiders

Make sure that all AI utilization is ethical. With AI gaining more and more attention and being used in more areas, organizations should now factor ethics into their AI discussions. It is important that decision-makers seek out AI solutions that are not just useful but also meet leading international guidelines. This ensures transparency and compliance with international standards for AI management in the accounting sector.

AI has its own unique risks. Plan accordingly. With new technologies come new risks and unique considerations that companies may not have needed to think about before. Teams responsible for GRC considerations should implement new strategies and governance structures to adapt to this new reality. Leading organizations like FloQast have taken a proactive approach to stay ahead of the curve.

AI is a process, not a destination. Make sure you can continuously innovate. When adopting an AI solution, organizations should plan for continuous improvements to their solution through stakeholder training and engagement. As these solutions develop, users should grow with them, honing their skills to make the most out of this technological investment.