AI risks in finance and accounting

AI is making its mark on finance, but finance teams can’t afford to get it wrong. From predictive forecasting to performance insights, AI is reshaping the way teams plan, analyze, and act. But with opportunity comes responsibility. In this blog, we’ll explore how to put AI to work for finance securely, accurately, and on your terms. 

How is AI used in finance and accounting?

In finance, AI helps leaders make better decisions much faster.

Today’s most common use cases include:

• Generating written insights from structured and unstructured data
• Automating processes like transaction matching or forecast updates
• Providing real-time views into key metrics
• Tracking changes on demand

With Prophix One Intelligence – the AI engine that powers Prophix One – finance teams can generate board-ready summaries, flag cost discrepancies, or surface key insights to improve planning and reporting, all from a single platform. By embedding AI into the platform, finance teams gain the ability to act faster without sacrificing accuracy. 

But the speed alone isn’t enough. With financial data comes risk, and the systems that use it need to be just as secure as they are smart.

That’s why the next phase of AI in finance is focused on autonomous work. AI engines like Prophix One Intelligence aren’t only automating manual work, but give CFOs the confidence to lead with clarity, data-backed insight and deliver strategic foresight. 

What are the risks of using AI in finance? 

No system is risk-free. And when sensitive financial data is involved, security, privacy, and accuracy are non-negotiable. 

AI tools are only as reliable as the data, context, and controls behind them. Let’s walk through some common concerns finance leaders face when evaluating AI. 

Misuse of data

AI models trained on broad or unstructured data can behave in unpredictable ways, especially if they weren’t designed for finance.

For instance, if a general AI system is asked to build a forecast, it might pull irrelevant data or miss critical financial logic. This kind of data misuse can lead to inaccurate results or erode trust among stakeholders.

Prophix One Intelligence is built for finance, with structured guardrails that ensure your data is used in context. AI works within your existing governance and security protocols, so your team stays in control, including protecting against using internal models trained on structured data from your own environment. The output aligns with your actual business operations, not assumptions from the outside world or what is generally available online. 

Data discrimination 

Bias in, bias out. When AI tools use incomplete or flawed data, they may deliver skewed results. That’s why it’s important to always use clean, accurate data. Inaccurate data creates a risk of biased decision-making, especially in areas like workforce planning or capital allocation.  

Prophix One uses validated, structured data from your planning environment to ensure results are based on your actual business context. You’re not relying on internet-trained algorithms. It’s your own numbers, in your own environment.

Cybersecurity, fraud, and data breaches 

Many AI tools operate as open systems. If you're using third-party AI services that aren't purpose-built for finance, it’s not always clear where your data is going, or how it's being stored, used, or shared.

This creates a serious risk of data breaches, regulatory violations, and financial exposure. 
Prophix One Intelligence takes a different approach. As an engine built into our secure, end-to-end platform, your sensitive data never leaves your environment. AI responses are governed by the same user-level permissions already in place, so only the right people see the right data. That’s how finance teams stay in control, reduce exposure, and protect against risk.

As CFOs begin to think critically about data governance, AI engines that are built into a platform, like Prophix One Intelligence, are becoming the default for safe, scalable AI in finance. 

Benefits of using AI-powered financial performance management software

Unlike public AI tools, purpose-built finance platforms like Prophix One are designed to reduce risk, not create it. Here’s how.

Data protection and responsible AI

Prophix One is built with responsible AI principles in mind: transparency, trust, fairness, and compliance. Prophix holds certifications that few others in the industry can claim, including: 

    •    ISAE 3402 
    •    SOC 2 
    •    ISO/IEC 27001 
    •    TrustArc’s Responsible AI certification 

This certification evaluates our practices against globally recognized frameworks like the OECD AI Principles, the NIST AI Risk Management Framework, and the EU AI Act. In short: when you choose Prophix, you’re using AI that’s built to be ethical, auditable, and accountable. 

Built-in data governance

Good AI starts with good data. Prophix One ensures that AI is working with accurate, auditable, and permission-controlled inputs. 

The platform complies with GDPR, undergoes regular third-party audits, and gives you visibility into how data is handled and stored. Every AI interaction is governed by internal controls, so your results stay secure, compliant, and relevant. Read more about our compliance practices.

End-to-end security controls

Prophix One applies user-level permissions to every AI interaction. Whether it’s a forecast, summary, or workflow action, the user will only receive answers based on their level of access.

That means no data leaks, no confusion, and no extra steps. Your team can plan, analyze, and report with confidence knowing your data is secure at every touchpoint. 
 

What makes Prophix One Intelligence different? 

The difference is in design. While general-purpose AI tools offer speed, they don’t offer safeguards.

Prophix One Intelligence was purpose built for finance not only with automation, but to support confident decision-making that’s fast, flexible, and secure. By embedding both generative and agentic AI into your planning workflows, it helps finance teams:

• Save time on manual tasks
• Catch risks before they escalate
• Make informed decisions with context-aware insights
• Maintain full control over data usage, access, and visibility

Whether you're forecasting the next quarter or analyzing last month's performance, Prophix One Intelligence helps you lead with accuracy and confidence without compromising security. Moving into the future, our focus is on making AI accessible to every finance professional—it’s not about keeping up with AI; but about putting AI to work for you.