Erica Williams, the former Chair, President, and CEO of the Public Company Accounting Oversight Board (PCAOB), has issued a stark warning about the dual-edged nature of artificial intelligence (AI) in today’s corporate landscape. Speaking from her extensive experience.
Williams emphasized that while AI holds immense potential for benefits, it also introduces significant risks that organizations, particularly within African markets, must address head-on.
“Now is the moment to make sure that you are investing in oversight over the use of AI,” Williams urged. “If you don’t have that expertise in-house, you must look for it outside.” Her call comes as businesses increasingly integrate AI technologies, a trend that has sparked widespread discussion across industries.
Williams also challenged the prevailing narrative of a universally deregulatory environment. “A lot of people think that it is [deregulatory], but I actually think that it’s deregulatory for some and could be hyper-regulatory for others,” she explained. She argued that the theory of market self-regulation places unprecedented pressure on chief financial officers (CFOs) and audit committees, who must navigate these shifting dynamics with precision.
Reflecting on her years defending clients in private practice, Williams highlighted the persistent threat of shareholder litigation. “The statute of limitations is longer than any political winds,” she noted. “Just because you might be in a government deregulatory type environment doesn’t mean a shareholder might not want to bring cases.”
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In light of evolving threats, Williams stressed the need for robust internal controls. “This is a time you want to make sure that you are doing a comprehensive annual assessment of your controls to ensure they are fit for today’s challenges,” she said. She pointed to emerging risks like email spoofing and deepfake voice technology, which are increasingly exploited for financial fraud, rendering outdated tools ineffective.
Finally, Williams addressed the cultural underpinnings of fraud within organizations. “A lot of times fraud occurs because of the culture of an organization and the incentives that are placed on employees,” she observed.
She underscored the importance of fostering a safe environment for whistleblowers, adding, “The best way to find out if there’s an issue is to have someone inside your company highlight that for you. They won’t do that if they feel there’s a risk of retaliation.
