Professional financial reports are now being written by no one, making it impossible to hold anyone responsible for a multi-million dollar mistake.
Generative AI creates a governance gap where complex narratives look perfect but lack a human author who exercised actual judgment. When a financial document is produced by a machine, there is no interpretive mind behind the words that can be held accountable. We rely on these documents to make high-stakes decisions about where to put our money. The professional appearance of AI output masks the fact that human responsibility has completely disappeared from the process. It creates a system where a massive error can occur and there is nobody to blame.
When Tools Interpret: Generative AI and the Governance Gap in Financial Narrative
SSRN · 6419378
Financial governance assigns accountability through a unified narrative of financial outcomes. That unification rests on two conditions the governance apparatus has never tested directly. Firstly, that interpretation reflects the tacit knowledge of a socialised professional. Secondly, that it has a governable human author. Presentational adequacy served as a proxy for the first and the act of producing interpretation supplied the second. Generative AI severs the proxy and dissolves the attributi