Understanding the Ethical and Social Consequences of Data Analytics for Organizational Management in the Age of AI: Accounting Ethics Perspective

Understanding the Ethical and Social Consequences of Data Analytics for Organizational Management in the Age of AI: Accounting Ethics Perspective

Copyright: © 2024 |Pages: 33
DOI: 10.4018/979-8-3693-1058-8.ch011
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Abstract

This chapter addresses the ethical and social consequences of using AI and data analytics in accounting. It looks into the impact of contemporary innovations on corporate governance and emphasizes the value of moral judgment. Despite the fact that AI and data analytics have digitized and given insights into accounting, understanding their ethical and social effects is crucial. The chapter addresses the advantages and drawbacks of applying AI to accounting, including changes in management, societal repercussions, prejudice, privacy issues, openness, and accountability. It additionally takes into account how automation will affect jobs and the accounting sector. The chapter urges stakeholders to prioritize ethics and control possible risks by highlighting ethical awareness and responsible decision-making when integrating AI and data analytics.
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The Evolving Area Of Organizational Management

The subject of organizational management is always moving and adapting to changes in society, new technological advancements, and emerging trends. Businesses always try to change and improve their work to meet new demands in a difficult world where things are changing all the time (Cushing & Osti, 2023; Deloitte, 2021; Al-Haddad & Kotnour, 2015; Burnes, 2011). The main driving force behind organizational changes is the desire to capture possibilities that would ultimately boost internal productivity (Hussain, 2023). The process of establishing new policies, structures, or practices within an organization is known as organizational change or transformation. According to Hussain (2023), organizational change refers to the process through which a company or organization adjusts its objectives or regular activities, for example, to address and react to various situations or markets. Sharma (2020) asserts that six different types of organizational changes are frequently used, depending on the situation: structural change, strategic transformational change, people-centric organizational change, technical change, remedial change, and unplanned change. Managing transformation is a complex and risky process, which often leads to companies struggling with changing organizational projects and falling short of expected outcomes (Errida & Lotfi, 2021; Jacobs et al., 2013). Businesses must invest significantly in making numerous changes to adapt to the changing environment (Errida & Lotfi, 2021). Companies must also have the necessary skills and resources to manage a successful transformation. They must also have a clear plan in place to make the necessary changes and monitor their progress. Finally, companies must be willing to embrace change and take risks in order to achieve their desired outcomes.

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