AI and Automation Technologies Won’t Make Accountants Obsolete

By:
July 6, 2024

Artificial intelligence (AI) has received a lot of media hype over the past few years as companies across a variety of industries have begun to adopt AI tools in hopes of driving efficiencies, reducing costs, and boosting their bottom lines. AI has already started to have an impact on the accounting industry, and last spring a new version of ChatGPT even passed a practice CPA exam. One of the major reservations about AI in accounting is the impact it may have on accounting careers. Will AI technologies lead to end-to-end automation that will replace accountants? Let’s take a closer look at the AI landscape in the accounting profession.

AI Adoption in Accounting

If you need a quick primer on AI in accounting, this Thomson Reuters infographic will help get you up to speed.

Where will AI fit into accounting? CPA Practice Advisor recently published an article by BILL Chief Product Officer Irani Wasti that provides key insights into AI’s likely impact on the accounting industry. She observes that accountants are already familiar with basic automation tools that transfer information from invoices into a spreadsheet or accounting console. AI tools will provide remarkable capabilities beyond “simply completing tasks to also include providing high-level strategic analysis and recommendations,” Wasti writes.

AI tools are already — or will soon — help accounting firms:

  • collect and analyze data on a much broader and deeper scale
  • enhance workflow automation and reduce errors
  • handle expense and payroll processing
  • reconcile accounts and prepare audit reports
  • improve fraud detection
  • conduct faster research for tax optimization
  • drive strategic planning and forecasting

The oft-stated goals of AI tools are to increase efficiency and to handle mundane tasks so that employees can focus on higher-value accounting tasks.

Wasti observes that the adoption of AI tools in accounting requires a major shift in the mindset of firm leadership and the upskilling of employees. AI tools can help accounting firms fill resource gaps and help accountants keep pace with their growing workloads. She recommends that firms “consider the skillsets of their existing employees when deciding which tools to implement and develop thorough change management plans centered around their employees and their clients.” Accounting firms should also ensure that they have enough reliable information to optimize the performance of AI tools and achieve the expected ROI on technology investments.

Accounting firms that remain reluctant to adopt AI tools can still remain competitive. They have many automation and nongenerative AI tools to choose from to advance their digital transformation at their desired pace.

Will AI Affect Accountants?

At this point, most accounting firms — especially small and medium-sized firms — have not adopted AI accounting tools. The technologies’ benefits and lower costs will eventually drive wider AI adoption in the profession even among these firms.

What impact will AI adoption have on accountants? Although AI tools work much faster than humans and can discover complex connections that humans typically can’t, accounting professionals shouldn’t worry that AI solutions will take their jobs. “AI is most useful when paired with the knowledge and expertise of accounting professionals,” Wasti writes. Accounting functions that will continue to require humans to perform include:

  • Data integrity: Because AI technologies are only as good as the data they analyze, humans must be involved in overseeing data integrity.
  • Complex decision-making: AI tools will not be able to handle complex business transactions, regulatory compliance, and other fine-grain accounting details.
  • Advisory tasks: Although AI will be able to produce strategic analyses and recommendations, accountants will be needed to interpret data, provide context, and give advice on strategic financial decisions.
  • Client relationships: Accountants have the ability to communicate with clients, understand client needs, and build and maintain client relationships — skills that AI tools lack.

The human touch will remain essential in accounting to provide the expertise, experience, and nuances that AI tools cannot match.

However, it’s a good idea to keep up to date with the evolution of AI accounting tools. As part of your career development, it will be essential to understand the impact of AI and other technology tools, keep your technology skills up to date, and be open to and prepared for changes in the profession.

Career Moves Can Help You Navigate a Changing Profession

Paul Wigglesworth, CPA and founder of Career Moves, can help you build the perfect resume for today’s accounting jobs and get it into the hands of the right people at many of the top companies in Connecticut. With more than two decades of experience helping accounting and finance professionals land their ideal positions, he knows what hiring managers look for in your resume. Contact Paul for assistance.