Thought Leadership

Introduction The present enthusiasm for AI is rational, writes Emmet Kelly, but it needs to be balanced with proper governance, legal compliance, risk management, and human responsibility. Irish businesses are embracing artificial intelligence (AI) with enthusiasm. Across sectors such as professional services, finance, retail, manufacturing, logistics, as well as the public sphere, there is a widespread perception that AI, in a general sense, is a decisive productivity tool, capable of accelerating analysis, improving decision-making, and reducing operational friction. Most companies do not ‘adopt AI’ as a single initiative. Instead, they accumulate multiple AI systems over time – some explicit, some embedded, some user-driven, each with distinct risk profiles, data dependencies, and governance requirements. AI is not a single tool, nor a discrete system that can be cleanly ‘adopted’ or ‘switched on’. It is now a pervasive layer embedded across the software stack, the internet, and a set of tools to be easily accessed and used daily in the world of work. The principal challenge for companies therefore is not technical capability, but coherence: understanding where AI is present, what role it plays in decision-making, and how accountability is maintained across this fragmented landscape. The enthusiasm for AI is rational. AI systems continually demonstrate an impressive ability to summarise complex information, generate plausible text, detect patterns at scale, and automate tasks that previously required substantial human effort. However, this enthusiasm and use frequently outpaces a realistic appreciation of the complexity, opacity, and governance challenges that accompany AI deployment. For the accounting profession in particular – for whom judgement, verification and accountability remain foundational – this imbalance presents material risks. This article explores how Irish businesses are encountering AI in practice, why its complexity is often underestimated, and what recent research conducted by Amárach reveals about readiness among SMEs. Effective governance will require not only regulatory compliance, but a clearer understanding of the optimum relationship between humans and machines, one that preserves responsibility rather than attempting to outsource it. The illusion of simplicity For many organisations, the first encounter with AI is through publicly accessible systems such as OpenAI’s ChatGPT, Claude by Anthropic, or Gemini from Google. These large language models (LLMs) present AI as conversational, accessible, and apparently intuitive. Users ask a question, using ‘prompts’, and receive a fluent, structured response, from what appears to be a single, confident synthesis of vast amounts of underlying information. This interaction, or ‘chat’, creates a powerful illusion of simplicity. The complexity of the system, the scale of its training data, the probabilistic nature of the outputs, the constraints imposed by prompts, and the absence of any true understanding remains largely invisible. AI doesn’t understand anything. It merely matches words, numbers and context of the chat that best fits the data the AI is referencing. What appears to be a dialogue is a statistical process that predicts likely continuations of text based on patterns in data. The capacity to understand and interpret the quality and value of the AI response, or output, remains the responsibility of the human user. For professionals accustomed to contextual awareness, critical analysis and judgement, this distinction matters. LLMs do not ‘know’ when nuance is missing, when assumptions are incorrect, or when an answer is incomplete. They summarise, average, and generalise. In doing so, they may lose minority positions, edge cases, and context-specific considerations that are often critical in accounting, audit, tax, and governance work. AI in office and productivity software Beyond these publicly visible systems, AI is now embedded in many workplace productivity tools. Platforms provided by Microsoft, Google, and Apple increasingly incorporate AI-driven features: document drafting, spreadsheet analysis, email prioritisation, meeting summarisation, and even predictions of where trends in numeric data are likely to lead over time. Because these capabilities are integrated into familiar software, they are often perceived as incremental enhancements rather than as AI systems per se. Yet the AI governance implications still apply. For example, automated summarisation of discussions may omit critical qualifications or nuances. Predictive suggestions may reinforce historical biases. Decision-support features may subtly shape professional judgement without being formally recognised as decision-making inputs. The risk here is not malicious intent, but unexamined reliance. When AI-generated outputs are treated as neutral or authoritative simply because they are embedded within trusted tools, accountability can become blurred. AI in enterprise systems AI’s influence extends further into enterprise systems that underpin organisational operations. Enterprise resource planning (ERP), customer relationship management (CRM), and accounting platforms from providers such as SAP, Salesforce and Sage, now deploy AI for forecasting, anomaly detection, credit assessment, inventory optimisation, and workflow prioritisation. In these contexts, AI outputs can directly influence financial reporting, risk classification, and operational decisions. Yet they are often treated as system features rather than as models with assumptions, limitations, and potential points of failure. For accountants and finance leaders, this raises critical questions: Who validates these models? How are errors detected? What documentation exists? And how does professional responsibility apply when an AI-driven recommendation is followed? In-house AI models Larger organisations increasingly develop AI models ‘in-house’, using proprietary data to support functions such as fraud detection, credit-risk assessment, demand forecasting, and operational optimisation. These systems may be customised, powerful, and bring competitive advantage, but they also bring concentrated risk. In-house AI models depend entirely on the quality, scope, and representativeness of the data used to train them. They may reflect historical practices that are no longer appropriate, or embedded organisational biases. Without robust governance, policies, procedures, documentation, and on-going monitoring, such systems can quickly drift away from legal compliance and ethical acceptability. Regulation: the EU AI Act in context The European Union (EU) has sought to address these risks through the EU AI Act, which introduces a risk-based framework for AI governance. The EU AI Act emphasises transparency, human oversight, data quality, and accountability, principles that align closely with professional standards in accounting, auditing and assurance. However, regulation alone cannot resolve the underlying issues, as AI is no longer confined to discrete, easily identifiable systems. It will pervade software, services, and information flows from within an organisation, and often beyond. Organisations may be using dozens of AI-enabled tools without explicitly recognising them as such. Compliance, therefore, cannot be treated as a one-off assessment; it must become an on-going capability. Are Irish businesses AI-ready? Recent AI-readiness research conducted by Amárach Research in collaboration with InstaComply provides a clear picture of this structural gap. While the findings indicate strong enthusiasm for AI adoption among Irish SMEs, many of which are deploying AI at speed, there are also significant weaknesses in governance readiness. While many companies are experimenting with and deploying AI, far fewer have established clear ownership, policies, controls, and governance structures required to manage these systems safely, transparently, and in compliance with existing and emerging regulation. For example, only 37% have appointed a policy owner responsible for AI and data governance, while just 32% maintain risk registers that include AI-related risks. More than one-third have none of the basic structures that the EU AI Act will expect businesses to maintain. These findings do not show a failure of intent, but a structural gap. Use of AI is moving from an experimental phase to the operational core, yet the governance mechanisms needed to control it remain underdeveloped. The EU AI Act is not simply another compliance obligation – it requires a fundamental shift in how organisations must design, monitor, and document their automated systems. Taking responsibility Arguably, and as can be seen from our research findings, Irish businesses are engaging in “conversations with machines”, most often using LLMs, without fully understanding the mechanisms underlying the ‘conversation’ or the operations and quality of the machine with which the user is conversing. LLMs respond blindly based on the level, quality, and structure of the data that informs them. They do not challenge objectives, interrogate ethical implications, or assume responsibility for outcomes. Where complexity is poorly understood, responses tend to polarise. Some users may become distrustful, focusing on AI’s errors and limitations and rejecting its utility. Others may move in the opposite direction, treating AI outputs as authoritative and implicitly transferring responsibility to the system. Both kinds of behaviour present problems and risk. AI does not absolve individuals or organisations of responsibility, nor should it be dismissed as inherently unreliable. A useful analogy is that of tools in the physical world. The saying, “a bad workman blames his tools”, holds true for the use of AI, and a driver should not blame their car for their negligent driving. The workman remains bad, the driver negligent, and the tools and machines, just that: tools and machines. Responsibility remains with the human agent and the organisation deploying the tools. A new RACI model for human–AI collaboration What is required is a new articulation of responsibility, effectively, a new ‘RACI’ model that clarifies who is responsible, accountable, consulted, and informed when AI systems are used. This approach reflects a broader shift: compliance must move from static documentation to dynamic, operational governance, which embeds EU AI Act requirements, such as data quality, traceability, and human oversight, directly into development and operational processes as code. Human-in-the-loop approaches are not merely a regulatory preference; they are a practical necessity for maintaining standards, managing risks and sustaining businesses on the frontiers of rapidly changing, brimming with possibilities AI landscape. Conclusion: learning to drive the machine AI represents an extraordinary technological advance, and Irish businesses are right to explore its potential. But power without understanding presents risks. The accountancy profession, with its long-standing emphasis on judgement, accountability, and assurance, is well placed to lead a more mature, responsible and strategy-led engagement with AI. The challenge is not to slow innovation, but to learn to ‘drive’ these machines responsibly – within the limits of the law, ethics, business sense and professional judgement. AI is a tool, not an actor. Recognising that distinction will be central to protecting customers, clients, organisations, and public trust in the years ahead. Emmet Kelly is an AI data governance and compliance expert, and CEO of InstaComply, which empowers organisations to navigate regulatory complexity with smart automation.

Communication is a key skill of leadership. You can’t become a great leader until you become a great communicator. When you connect with people, that is when it becomes authentic, allowing you to speak directly to people’s needs. The same is true of networking. Two attributes are critical to your networking abilities. To communicate effectively you need to build relationships and central to that is trust. Trust is vital for forging a connection and is underpinned by how people see you. How you see yourself and the world will be reflected in your attitude, and this will also determine how you are seen.  Trust Trust is paramount. Although sometimes hard to define, we all know when it is not there. Economic uncertainty and lost faith in business and globalisation means trust is no longer the default position for cynical consumers. The annual Edelman Trust Barometer that surveys 33,000 people in 28 countries (2025) has reported that trust in four institutions – government, business, media and non-profits – is at an all-time low. Two-thirds of respondents believe they are being lied to by traditional societal leaders. Interestingly, the report shows that people trust what employees say about their company more than what it says about itself. Contrary to what many believe, trust is not some vague, squishy element of human relations; rather it is a vital component of all our interactions with each other. Put simply, high trust is a dividend and low trust is a tax. In our increasingly low trust world, trust has literally become the new currency of our global economy. What is trust? Trust is not an event. Trust is not an entitlement – trust is earned. You don’t meet somebody today and trust them tomorrow. You can’t go from anonymity to a trusted confidante overnight. Trust is won by doing what you say you will do and doing that consistently and regularly. Trust is a fundamental component of how our world works. It is a leap of faith – a belief that what we expect to happen will happen because someone did what they were supposed to do. The dictionary definition of trust is “belief in the reliability, truth, ability, or strength of someone to do something”. Trust can take years to win and be lost in a second. When damaged, trust takes a long time to regain. Networking plays a role in sales because to get a sale, two conditions must be met. First, you demonstrate that your product or service will benefit the buyer, fill their need and resolve a pain point. Secondly, you need to build a solid personal relationship based on trust.  "Trust is earned in the smallest of moments. It is earned not through heroic deeds, or even highly visible actions, but through paying attention, listening and gestures of genuine care and connection." —Brené Brown Networking is about giving to other people and adding value to their lives, comprising empathy and authenticity. In doing this, you develop trust and build a reputation for being trustworthy. People will then refer you to others, from short-term transactions come longer-term relationships. In an increasingly disconnected, fractured and untethered world characterised by an absence of trust, people search for beacons of trust and seek it in their networks. We crave belonging and want to belong to something bigger than ourselves. Companies now have to reshape their messaging around trusted employees and their networks. They need to appreciate that trust is not some mysterious element of human relations but is the foundation of everything we do – it is a hard-edged economic driver. High trust saves money and makes money.   Trust and reputation Reputation is important. It has been defined as what people say about you when you are not in the room. Reputation is a scoreboard kept by others. These other people grade your performance and tell the rest of the world. You cannot create your reputation alone, but you can influence it. ‘Reputational capital’ can be tracked and aggregated. As mentioned above, Edelman has studied trust for over 20 years and believes it is the ultimate currency in the relationship that all institutions, companies, brands, governments, NGOs and media build with their stakeholders. Trust defines an organisation’s licence to operate, lead and succeed. Trust is the foundation that allows an organisation to take risks and if it makes mistakes, to own responsibility and rebound from there. For a business, lasting trust is the strongest insurance against competitive disruption, the antidote to consumer indifference and the best path to continued growth. Without trust credibility is lost and reputation can be ruined.  “When you become leaders, the most important thing you have is your word, your trust. That’s where respect comes from.” —Michelle Obama In her book Presence Harvard Business School Professor Amy Cuddy writes that people ask two questions when they meet anyone. First, “Can I trust this person?” and secondly, “Can I respect this person?” Cuddy claims that trustworthiness is the most important factor in how people evaluate you. She says, “One thing I was always very conscious of was that people size up others in seconds and quickly decide whether they will like and trust the other person or not.” So the old cliché is true – you don’t get a second chance to make a first impression. Kingsley Aikins is founder of The Networking Institute. His new book, Networking Matters: The Power of Human Connection, is published by Chartered Accountants Ireland.

Kingsley Aikins is founder of The Networking Institute. His new book, Networking Matters: The Power of Human Connection, is launching on 4 December at Chartered Accountants House, Dublin. Members are invited to attend the book launch, at which Kingsley will give a mini masterclass on the essentials of networking, a flavour of which he provides below. In a world that is constantly changing and facing unpredictable challenges – such as financial crises, pandemics, and geopolitical conflicts – resilience is essential for both individuals and organisations. One of the most important assets in navigating these turbulent times is a strong and diverse personal network. Networking is a critical human skill that can help us survive disruptions, adapt to new circumstances, and thrive in an ever-evolving environment. Dealing with disruption Modern times are marked by unexpected events, often referred to as ‘black swan’ events, which are rare, unpredictable, and have far-reaching consequences. Examples include the COVID-19 pandemic, the invasion of Ukraine, and conflict in the Middle East. In the face of such shocks, personal networks are more important than ever. As companies adjust their workforces and individuals reconsider their careers, networks become essential for finding new opportunities. Today, job positions are often temporary, but networks provide enduring value. Whether times are good or bad, strong networks are critical for personal and professional success. The myth of individualism Success is often portrayed as the result of individual qualities such as talent, education, perseverance, courage, luck, and effort. However, relationships and connections with others are equally important. The myth of the self-made individual overlooks the fact that opportunities are attached to people, and creativity flourishes when talented individuals collaborate. While individuals can make a difference, they rarely achieve lasting success alone; strong networks are vital for both survival and achievement. As careers progress, it becomes clear that opportunities arise through people, and collaboration fosters innovation. Everyone we meet connects us to new possibilities and perspectives. Your next job: the changing nature of careers The traditional model of lifelong employment has changed dramatically. Job security is now rare, and the old social contract of loyalty in exchange for security no longer exists. Companies today have shorter lifespans, and people often outlive the organisations they work for. The step-by-step career ladder has been replaced by a more dynamic and flexible ‘jungle gym’ approach, where frequent moves and varied experiences are valued. Most new jobs are found through personal contacts rather than advertisements, and the most desirable positions are often never advertised. Research has shown that ‘weak connections’ or casual acquaintances at the edges of our networks, are especially powerful in uncovering new opportunities. The many benefits of networking Networking offers numerous advantages, including business development, customer acquisition, investment opportunities, supplier relationships, staff retention, and loyalty building. Beyond professional benefits, strong and diverse networks also contribute to longer life, better mental and physical health, greater earnings, and overall happiness. Networking helps combat loneliness and social isolation, which are known to harm health. The Harvard Longitudinal Study has found that our relationships are more important to health and well-being than our genes or lifestyle choices. A sense of belonging and purpose is fundamental to human needs, as recognised by psychologist Abraham Maslow. Strong networks enhance resilience and help individuals recover from adversity, highlighting the importance of authentic social connections in both work and society. Hire and wire: networking in the workplace Companies seek employees with strong and diverse networks, recognising that human capital includes not just knowledge but also connections. When hiring, they consider not only qualifications and experience but also the breadth and quality of candidates' networks. Success increasingly depends on who knows you, rather than just what you know. Many firms, such as McKinsey, have developed robust alumni networks, fostering ongoing engagement and business referrals. These networks also encourage the return of ‘boomerang employees’. who bring valuable experience and connections when they rejoin an organisation. Diversity vs. homophily People tend to form connections with others who share similar backgrounds, values, and interests – a phenomenon known as ‘homophily’. While this is natural, it can limit the diversity of our networks and our exposure to new ideas. Organisations that reflect societal diversity tend to perform better, and individuals benefit from seeking out different perspectives and experiences. Embracing diversity in our networks helps prevent predictable, homogenous thinking and opens us up to new opportunities and insights. Leveraging the intelligence of your network Each person's network is a unique and valuable resource that can transform both individual careers and organisations. Networks provide access to informal information – such as advice, insights, and tips – that is not readily available through formal channels. By engaging with our networks, we can gather critical intelligence, make better decisions, and gain a competitive edge. Many leading, global companies recognise the value of network strength, encouraging employees to build connections and leverage network intelligence. Trust is essential for employees to use their networks for the benefit of the organisation, and a strong network culture fosters both individual and collective growth. Referrals and testimonials One of the most significant advantages of networking is the potential for referrals and recommendations from satisfied contacts. Keeping in touch with past clients and colleagues can lead to new business and opportunities. Although some people hesitate to ask for referrals, it is an essential part of effective networking. Referrals are cost-effective, quick, and often lead to strong, mutually beneficial relationships. Portability of your network Your network is a personal asset that remains with you throughout your career. When you leave a company, your network goes with you, providing ongoing value and support for your career development. Investing in your network is an investment in your own future. Overcoming ‘stranger danger’ Many people feel apprehensive about approaching strangers, a feeling often instilled from childhood. However, most of our important relationships began with someone who was once a stranger. Networking helps us overcome this fear and recognise the potential for transformative opportunities that can arise from a single introduction or conversation. As our careers progress, it becomes increasingly important to expand our circles and stay aware of the achievements and movements of others. The ‘Network Gap’ LinkedIn has identified a ‘network gap’, where some individuals have a significant advantage in accessing opportunities based on their connections. Factors such as upbringing, education, and work history can provide up to a 12-fold advantage in opportunity access. Research shows that 70% of professionals are hired by companies where they already have a connection. Addressing the network gap is essential to ensure equal access to opportunities for people with similar talent and skills, regardless of their background. Digital opportunities Digital technology has revolutionised networking, making it easier and more affordable to connect with anyone, anywhere. Geographic location is now less important than what you do, and digital platforms enable rapid, direct communication. These changes, including the integration of artificial intelligence, have fundamentally transformed how we build and maintain networks. The ripple effect Networking creates a ripple effect, where your reputation and influence extend far beyond your immediate contacts. Your actions and interactions can impact people you have never met, and acts of kindness and generosity can inspire positive cycles within your network and beyond. Practising random acts of kindness can strengthen connections and foster a culture of generosity. Conclusion As you advance in your career, the importance of networks and relationships increases. The skills that helped you secure your initial position become less central, while the relationships you build become the key to ongoing success and growth.