Over the past few months, ChatGPT has been the focal point of many discussions and continues to polarise opinions, with companies and governments banning its use and Spain raising concerns with the EU data protection watchdog over privacy.
AI is already here
Artificial intelligence (AI) is transforming many industries, and accounting is no exception. Yet AI is already here; the current amplification is how ChatGPT is transformative and represents a significant advancement in the field of AI, particularly in the area of natural language processing. Its ability to understand and generate human-like language, perform zero-shot learning, and adapt to specific tasks or domains makes it a valuable tool for many applications, including many of the repetitive tasks associated with accounting and bookkeeping.
Where are you on your AI journey?
As with any disruptive technology, or, as some would say, the natural evolution of technology, the traditional bell curve applies. With people in one of three camps
The AI Advocate
The AI advocate is someone who is excited about AI’s potential to revolutionise the profession. They are often early adopters of new technology and are keen to experiment with different AI applications to automate accounting tasks. They see AI as improving efficiency and accuracy, reducing errors, and increasing productivity. AI advocates including many fractional CFOs also believe that using AI in accounting will finally provide the opportunities to shift the profession towards ‘advisory’ services and enable deeper client relationships, better insights, and accountants facilitating better decisions and outcomes for clients as compliance work can and will be done more effortlessly.
The AI Skeptic
The AI sceptic is someone who is more cautious about the role of AI in the profession. They are likely concerned about the potential impact of AI on jobs in the accounting profession, particularly with regard to entry-level and repetitive tasks. They may also be worried about the ethical implications of relying on AI systems to make accounting decisions. AI sceptics recognise the potential benefits of AI, but they advocate for careful regulation and oversight to ensure that AI is used ethically and responsibly in the accounting profession.
The AI Neutral
Finally, we have those that are neutral. This is someone who is neither particularly excited nor particularly cautious about AI’s role in accounting. They may see some potential benefits of AI, but they are not particularly passionate about it. The neutral is likely to wait and see how others adopt and use AI in their accounting work before deciding whether to adopt it themselves. They may not have strong opinions about the technology one way or the other and may be willing to use AI if it makes their accounting tasks easier and more efficient.
As with any new technology, there are often theories and unfounded claims surrounding AI in the accounting marketplace.
AI will replace all accountants.
One of the most common theories about AI in accounting is that it will replace all accountants. The fear is that AI will automate all accounting tasks, making the need for human accountants obsolete. However, this is not necessarily the case. While AI can automate certain tasks, it cannot replace human accountants’ judgment and decision-making abilities. In fact, AI can enhance the work of accountants by providing them with better data and insights to make more informed decisions.
AI will make accounting less secure.
Another theory about AI in accounting is that it will make accounting less secure. The fear is that AI systems can be hacked or manipulated, leading to inaccurate financial statements and other accounting records. While it’s true that any technology can be vulnerable to hacking, AI systems can actually enhance security measures by detecting anomalies and potential fraud more quickly and accurately than humans.
AI will lead to job losses….or will it?
While headline-grabbing, another common theory about AI in accounting is that it will lead to job losses. The fear is that AI will automate so many accounting tasks that there will no longer be a need for human accountants. However, while some routine tasks may be automated, human accountants will still need to interpret data, use critical thinking, make decisions, and provide strategic advice. Additionally, the implementation of AI technology can actually create new job opportunities and the creation of new services in the accounting profession, such that the roles and service types that may emerge with the wider adoption of AI in accounting can be broadly categorized into five areas:
- AI development and programming
- Data analysis and interpretation
- Quality control, audit and assurance
- Ethical and risk management
- Training and support.
AI developers will be responsible for designing and building AI systems that can be used in accounting. They will need a strong background in computer science and programming languages such as Python and R. They will work closely with accountants to understand their needs and create AI systems to help them with specific tasks.
Data scientists will be responsible for analysing large sets of data and creating models that can be used to make predictions and identify patterns. They will need a strong understanding of statistical analysis and machine learning algorithms. They will work closely with accountants to help them understand the data and make informed decisions based on the insights provided by the AI systems.
AI auditors will be responsible for ensuring the accuracy and integrity of AI systems used in accounting. They will need a strong understanding of AI technology and the ability to identify potential biases or errors in the data. They will work closely with accountants to provide assurance that the AI systems are functioning as intended.
AI analysts will be responsible for interpreting the data and insights provided by AI systems and using them to make informed decisions. They will need a strong understanding of accounting principles and the ability to communicate complex data to others. They will work closely with accountants to help them understand the insights provided by the AI systems and make strategic decisions based on that information.
AI implementation specialists will be responsible for overseeing the integration of AI systems into accounting processes. They will work with accountants and other stakeholders to ensure that the AI systems are properly configured and functioning as intended. They will also provide training and support to users to help them understand how to use the AI systems effectively.
AI ethicists will be responsible for ensuring that the use of AI in accounting is ethical and aligned with societal values. They will need a deep understanding of the ethical implications of AI technology and its impact on individuals and society. They will work closely with accountants and other stakeholders to develop policies and guidelines for the responsible use of AI in accounting.
AI risk managers will identify and mitigate the risks of using AI in accounting. They will need a strong understanding of accounting principles and the ability to assess the potential risks of AI systems. They will work closely with accountants and other stakeholders to develop risk management strategies and ensure that the AI systems are secure and reliable.
AI consultants will be responsible for advising organizations on the best use of AI in accounting. They will need a strong understanding of AI technology and its potential applications in accounting. They will work closely with accountants and other stakeholders to identify opportunities for using AI systems and develop strategies for their implementation.
AI trainers will be responsible for providing training and support to accountants and other users of AI systems in accounting. They will need a strong understanding of AI systems and their applications in accounting. They will work closely with users to ensure that they have the skills and knowledge necessary to use the AI systems effectively and efficiently.
Our young people will fill many jobs that do not now exist
— Devereaux C. Josephs 1958
What once was true in 1958 will be the same for many Gen-Z and Gen-Alpha professionals as they enter the job market: their future roles don’t yet exist. Many Gen-Zers will see a greater shift towards upskilling and adaptation to the roles needing expertise with AI. Theirs is the future of quantum computing, accessing immersive data via VR and AR (virtual and augmented reality), and much more.
Overall, accountants will need to adapt to changing demographics and shifting expectations from younger generations, both from a staffing and customer perspective. By staying up-to-date with the latest trends and technologies, providing education and support to their clients, and developing new strategies, accountants can successfully support their clients, staff, and even Gen Z and Gen Alpha as they enter the workforce and become business owners and the future generation of accounting professionals.
By Darren Glanville, Fathom
Fathom will be exhibiting at Accountex London on the 10-11 of May 2023 at stand 780. You can register for a free ticket here.
