In recent years, the integration of artificial intelligence has significantly impacted numerous professions, and accounting is no exception. AI in accounting has emerged as a game-changing technology, promising to revolutionize the accounting landscape and transform the way professionals approach their work. But despite the tremendous buzz around solutions like OpenAI’s ChatGPT, Google Bard, Anthropic Claude and Jasper Chat, it is crucial to recognize that AI’s true role in accounting will likely be to augment human capabilities and streamline processes.
ChatGPT, in particular, has garnered attention as the first “consumer-grade” AI tool, gaining popularity due to its user-friendly interface and accessibility. Accounting professionals have found value in ChatGPT for marketing research, content creation and information summarization. For many accountants, however, it remains a far cry from an easy-to-use, ready-made solution for accounting firm technology.
For accountants, the challenges with the new technology have been significant, and among their concerns is security. Safeguarding client and confidential data is a foundational principle in our industry — client data should never be submitted to public chatbots. Unfortunately, some users have inadvertently exposed sensitive information, underscoring the need for firms to educate their personnel about AI tools and cybersecurity for accounting firms.
To further understand the potential security risks, one needs only to look at the recent Samsung ChatGPT leak. The incident triggered the establishment of strict usage rules and educational initiatives across corporate America. Industry giants such as Microsoft, Apple and Amazon took proactive measures, implementing policies around the use of AI tools like ChatGPT. Accounting firms will need to integrate similar measures for accounting data security.
The path to user-friendly AI in accounting
In pursuit of accurate and efficient AI solutions, specialized GPT tools trained on precise data are evolving. For tasks involving tax data and recommendations, precision is paramount to avoid significant financial consequences. Firms should look to accounting application developers to deliver bespoke solutions. Smaller, tailored AI tools promise to offer specific knowledge and solutions with the added benefit of maintaining the confidentiality of client data.
For accountants, this can mean using AI to identify accounting anomalies, automate tax returns and pre-code expense reports. These specialized AI functions operate solely on trained information and refrain from generating random, made-up data or “hallucinations,” when confronted with ambiguous queries. Moreover, they incorporate technologies to ensure data remains within the firm’s protected confines, impervious to outside parties.
To drive widespread adoption, AI in accounting must continue to seek more intuitive and user-friendly solutions. When AI becomes seamlessly integrated into existing applications and data systems and gains the trust of users through robust security measures, it will flourish. For instance, Intuit’s announcement of integrated Generative AI via its GenOS offering signals a step in the right direction.
Generative AI opens up possibilities for consumer-grade AI solutions tailored to specific accounting needs within platforms like the cloud-based QuickBooks Online (QBO). Accountants will be able to make complex queries like, “Show me my 10 largest client receivables balances that are overdue by 60 days and provide me the primary contact’s name and phone number for each.” This marks a synergy between human expertise and AI’s ability to assist in information retrieval.
Looking ahead: the future of AI in accounting
The rise of generative AI necessitates accountants to develop specific AI skills to harness their full potential. Learning to ask precise questions and “prompt” AI systems effectively becomes vital for extracting valuable insights and aiding decision-making. By combining accounting knowledge and skills with adept questioning, accountants can become proficient in using AI as a powerful advisory tool.
Users will have to exercise caution and independently verify all references cited by AI chatbots to ensure accuracy and reliability, due in part to AI’s tendency to generate misinformation in the absence of appropriate training data. Nonetheless, accountants should embrace AI as a tool that complements their expertise. As technology continues to evolve, consumer-grade AI accounting solutions are on the horizon, making AI more accessible to all. Embracing AI as a collaborative partner will not only reshape the accounting landscape but also strengthen the connection between technology and human expertise.
This represents a pivotal moment for the profession. By recognizing AI’s potential and investing in the necessary skills, accountants can elevate their roles, delivering enhanced services and driving greater value for their clients. If they stay informed, adopt security best practices and hone AI-specific skills, accountants will confidently navigate the AI revolution and emerge as empowered users of advanced technology.
