How to Assess AI Vendors for Responsible Use

As AI entrenches itself further into our day-to-day lives, businesses have quickly prioritized efficiency, decision-making, and scalability. But with great power comes great responsibility, especially when it comes to accounting and compliance. AI introduces unprecedented risks that must be addressed before they become a massive headache. For organizations looking to leverage AI, selecting the right vendor is about more than innovation—it’s about ensuring ethical, secure, and auditable AI use.

That’s why we created a guide to help businesses like yours assess AI vendors for responsible use, know the risks to be aware of, and use the AI Vendor Risk Assessment Toolkit to help streamline this process. 

Why Responsible AI Matters 

AI can do so much for businesses, particularly improving workflows and enhancing analytics. However, improper use or poorly designed systems can expose companies to significant risks, including compliance issues, data breaches, and reputational damage—none of which are easy to fix. When it comes to enterprise-level systems like those used in accounting and compliance, the stakes are particularly high. 

Responsible AI use means choosing tools that are ethical, transparent, and aligned with regulatory standards (such as ISO 42001). This global framework has become a gold standard, offering a robust, auditable approach to identifying and mitigating AI risks. At FloQast, responsible AI isn’t just a check-the-box exercise; it’s woven into every layer of our operations, earning us one of the first ISO 42001 certifications globally. 

The Growing Need for Risk Assessment 

AI is complicated. Beyond the obvious benefits, organizations often find themselves face to face with issues such as: 

• Output Errors: AI models can produce false or misleading information (known as "hallucinations"), undermining trust and creating compliance liabilities. 
• Data Security Risks: AI systems are vulnerable to injection attacks and unintended data leakage. (You can learn more about prompt injection attacks in this episode of Blood, Sweat, and Balance Sheets).  
• Explainability Gaps: Without transparency and auditability, businesses risk both noncompliance and regulatory scrutiny. 
• Governance Failures: Vendors that lack proper governance frameworks expose their clients to operational and reputational risks. 

When evaluating an AI vendor, it’s essential to look beyond software capabilities alone. The focus should include how the vendor addresses these risks and whether their governance models align with recognized standards like ISO 42001. 

Key Questions to Ask AI Vendors 

To ensure you’re selecting the right AI vendor, here are a few critical questions to ask during the evaluation process:

1. How do you ensure the accuracy of AI-generated outputs? 
2. What measures are in place to prevent data leaks or breaches? 
3. Is your AI technology auditable? 
4. Can you provide documentation on how you mitigate bias in AI outputs? 
5. What governance frameworks or certifications, like ISO 42001, do you adhere to? 

These questions can help reveal technical capabilities as well as a vendor’s commitment to responsible AI practices. Both are essential. 

Introducing the AI Vendor Risk Assessment Toolkit 

To simplify the evaluation process, FloQast has created the AI Vendor Risk Assessment Toolkit. This comprehensive guide was designed for accounting leaders, compliance professionals, and financial executives who need to mitigate risks while integrating AI-powered tools. 

What’s Inside the Toolkit 

Risk Evaluation Frameworks: Gain practical strategies for identifying risks like data security vulnerabilities, explainability challenges, and vendor accountability gaps. 

Key Questions to Ask Vendors: Use this curated list of questions to help you hold vendors accountable and ensure their tools align with your compliance needs. 

Practical Steps for Mitigation: Learn how to protect sensitive data, improve auditability, and foster a culture of ethical AI adoption. 

With this toolkit, you’ll not only feel confident about your AI vendor evaluation process but also proactively safeguard your organization from costly compliance errors. 

Setting the Standard for Responsible AI 

At FloQast, we believe in building tools our users can trust. Our dedication to ethical and secure AI practices is affirmed through our ISO 42001 certification. This rigorous framework ensures businesses can use auditable, bias-free, and governance-compliant AI across every product in our suite. 

We understand the unique challenges accounting and compliance teams face, which is why our approach is rooted in transparency, accountability, and customer trust. FloQast is proud to be among the first 20 companies worldwide to achieve this level of certification, alongside other leaders like AWS and Anthropic Cloud. 

Take the Next Step 

Are you ready to assess AI vendors with confidence and streamline your workflows responsibly? Download the AI Vendor Risk Assessment Toolkit and equip your business with the right tools to make informed, secure decisions. 

[Download the Free Toolkit Now] 

By focusing on responsible use, you’re not just adopting AI; you’re setting up your organization for long-term success. Together, we can shape the future of ethical and impactful AI in accounting and beyond.

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