Artificial intelligence is taking the accounting industry by storm, eliminating mundane tasks like data entry and reconciliation, providing powerful insights and freeing people for more interesting work. There’s no denying its power or the impact it’s already had on the industry.
Further, with the advent of generative AI including ChatGPT, automation in accounting firms is proliferating and redefining the future. Accounting and consulting giant PricewaterhouseCoopers recently announced plans to invest $1 billion in generative AI technology across U.S. operations over the next three years to transform its tax, audit and consulting services with automation — and it seems likely that even the smallest of firms may follow suit. In fact, four in 10 tax, accounting and audit professionals surveyed by the Thomson Reuters Institute revealed that they expect to see a rollout of generative AI in their organization within the next six months.
Despite growing interest and expectations for AI deployments in finance departments, there’s skepticism about what it can and cannot do. There’s also worry that the advanced technology can completely overhaul the industry and minimize the need for accountants, auditors or tax professionals. However, there are several compelling reasons why the future of finance requires organizations to strike a balance between both human and machine-driven intelligence.
Human and AI working in tandem is critical
Even with the most advanced technology, accounting firms can’t function successfully without a human element. While AI can process far more data than humans and work around-the-clock without tiring, technology has its limitations.
For instance, AI tools like ChatGPT can improve traditional accounting routines that can be tedious, but they may struggle to understand and perform mathematical processes that are inherent to finance. A study published by the American Accounting Association found that accounting students scored 30% higher than ChatGPT on questions related to auditing, financial accounting, managerial accounting and taxes — questions that all required mathematical thinking. The study also revealed that AI often covered up errors by providing explanations for incorrect answers, and these instances could create substantial challenges for firms without human intervention.
AI also falls short of humans when it comes to understanding nuances, creative decision-making, providing strategic advice, and ensuring regulatory compliance. While AI can gather or analyze data and track regulatory changes, we still need human intelligence to define the action plans that align with the strategy of the business. A human will still have qualitative insights that AI does not to make strategic business decisions or interpret and apply complex, evolving regulations and accounting standards.
Maximize AI’s value to elevate the role of finance professionals
Firms can get the most from their AI investments by identifying ways to have the technology work alongside accounting professionals in empowering ways. By arming staff with AI-driven tools, such as automated invoice processing and payments software and chatbots, processes that detract from job satisfaction become automated, enabling them to do better work by improving accuracy, reducing processing time and providing richer analytics or insights.
Freed from busy work, people can work more efficiently and spend less time on redundant tasks so they can focus on more impactful projects. A recent AvidXchange survey of finance professionals found that those with fully automated systems are 11 times more likely to work on strategic initiatives daily, empowering them to be high-level thinkers that can steer important business decisions across their organizations.
However, a factor standing in their way of more elevated jobs may be knowing how to work alongside technology and reap its benefits. Gartner reported that in 2023, 18% of finance staff demonstrate digital competency while only 11% of their managers do. The skills gap poses a real challenge, especially in an industry faced with labor shortages, making training and upskilling a top priority.
Collaborating with technology to create the future
As digital transformation intensifies, and organizations turn to advanced and emerging technologies like generative AI to drive growth, create efficiencies and secure a competitive advantage, the importance of balancing human intelligence and machine-driven insights becomes more critical.
Finance leaders can strike a balance by leveraging technology to empower their people and ensure that they have the skills and expertise needed to take advantage of all it has to offer. A recent Gallup poll shows that upskilling opportunities are welcomed — 69% of financial operations staff are interested in learning new skills at work and 48% would switch jobs for training opportunities that would enable them to advance.
If properly prepared to work alongside new technologies, finance professionals will be well-positioned to fill the 58 million new jobs that the World Economic Forum predicts AI will create, in turn helping to transform the future of their industry.
Credit: Source link
