How AI is transforming the accounting profession

How AI is transforming accounting

April 29, 2024 9:00 AM

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The artificial intelligence revolution in the workplace is building rapidly, with the pace of change speeding up. AI has become a key part of almost everyone's working life, according to a recent survey from Big Four firm EY, which found that 90% of respondents already use at least some AI in their work in some form or another — and accountants are no exception.

"Most CPAs have seen the power of ChatGPT, Claude, Google Gemini, and Microsoft's Copilot and the progress these large language models have made in the past year," L. Gary Boomer, strategist at Boomer Consulting, wrote in a recent column for Accounting Today. "The growth and capabilities of AI are exponential, rather than incremental, and will transform the accounting profession in many ways."

AI use cases and tools that firms are exploring in their practices are expanding seemingly daily. According to FutureTools.io by Matt Wolfe, who reviews the numerous applications that are available, there were as many as 2,675 tools as of April.

However, near-universal use does not translate to universal satisfaction. While the majority of respondents say AI has already had a positive impact on their personal experience at work (76%), the EY report also revealed that roughly the same amount of respondents are excited about AI as they are anxious about it (77% vs. 71%).

"With the wealth of opportunities that AI brings, it also carries a new set of risks — risks that are top of mind for employees," said the report. "While the technology is prevalent, increased exposure to AI is leading to increased anxiety for many."

When asked about what might actually address their fears, 81% said they want best practices on responsible AI to be routinely shared, 80% want more AI training/upskilling opportunities, and 77% want senior leaders to promote the responsible/ethical use of AI.

Despite these concerns, the technology continues to make a powerful mark. With a certain degree of irony, generative AI is likely to play a significant part in the battle against fraud, which is being perpetrated by fraudsters using generative AI.

A report in February by the Association of Certified Fraud Examiners found that 18% of respondents currently use AI and machine learning as tools to help combat fraud, while 32% anticipate implementing these technologies in the next two years. In addition, more than 50% of current anti-fraud programs already use or are expected to adopt related technologies like computer vision analysis, robotics and behavioral biometrics at some point in the future.

Whether excited or anxious, dramatic change is coming to accountants. Catch up on all our recent coverage of how AI is transforming the profession.

Exponential change awaits for firms taking up AI

Artificial intelligence is revolutionizing tax compliance-related services, yet some CPA firms are resistant to change.

For those hesitant CPAs, L. Gary Boomer, visionary and strategist at Boomer Consulting, has an important message: "Remember, technology is a member of your team that shows up and gets smarter every day."

In a recent column for Accounting Today, Boomer explores how the inventory of AI tools is increasing daily, yet for firms to take advantage of the power of AI requires the appropriate mindset, toolsets, and skill sets.

Read more:

Boomer's Blueprint: AI and transformation … who is responsible?

How accountants can ride the big wave of AI change

Accounting has come a long way since its early days, evolving generally at a slow and steady pace. But a generative AI "technology tsunami" is coming with the power to radically alter the landscape of the profession, and firms need to start preparing as quickly as possible, believes Ellen Choi, COO and co-founder of Aiwyn, a tech company that offers practice automation software.

"Brace yourselves, as a seismic shift in how we approach capacity is upon us," Choi wrote in a recent column for Accounting Today. "Do not be an ostrich with its head buried deep in the sand, deluding itself that nothing has changed. Prepare your team to meet this disruptive wave head-on."

Choi explores how the new technology will redefine the way accountants work and discusses what firms should be doing to get ready for the revolutionary changes that are on the way.

Read more:

How the AI revolution is ushering in a capacity revolution

Bad advice mars report card for generative AI tax guidance

The Washington Post recently tested the accuracy of the tax advice given by AI models deployed by Intuit's TurboTax and H&R Block, and found fault with both companies for providing answers that were either irrelevant or wrong. The two firms were quick to push back against the findings.

"Real-time monitoring and evaluation of customer interactions with the AI tool do not suggest a significant number of incorrect or irrelevant answers," Heather Watts, senior vice president of consumer tax products at H&R Block, wrote in an email to Chris Gaetano, technology editor at Accounting Today. She added that the errors produced during the Post's testing could be the result of insufficiently detailed prompts.

"The use of AI is less about doing all the tax work for the user and more about automating repetitive tasks to save time and ensure accuracy," said Karen Nolan, senior earned media manager with Intuit Consumer Group's TurboTax communications team. "Contrary to what the Post reported, Intuit has not found a significant number of people experiencing issues with its AI tool."

The profession remains skeptical. Exclusive research data from Accounting Today's parent company, Arizent, found that inaccurate or irrelevant information was the No. 1 concern accountants had about generative AI.

Read more:

Intuit, H&R Block tax AIs critiqued on accuracy

Is the AI glass half full or half empty?

AI continues to divide the opinions and reactions of accountants, according to a recent survey from Big Four firm EY. While 77% of respondents said they generally trust AI, 71% said they have anxieties about the technology.

Most believe AI will make them more efficient (82%), more productive (81%) and able to focus on higher-value work (81%). Yet people also cited concerns about AI adoption making certain jobs obsolete (75%), negative impacts on pay/salary (72%) and career concerns, including losing out on promotions for not knowing how to use AI technology (67%) and falling behind if they don't use AI at work (66%).

The report offers a prescription for firms: "It's important for leaders to meet employees where they are in their AI journey, and add employee engagement to their AI agendas. Armed with a deeper understanding of what is driving anxiety around AI, organizations can then take the appropriate steps to work through workforce concerns and equip their people for today's, and tomorrow's, challenges."

Read more:

EY poll: Excitement and anxiety about AI, in equal measures

Anti-fraud programs target generative AI

The use of AI in anti-fraud programs is expected to triple over the next two years, according to a report released in February by the Association of Certified Fraud Examiners, with the use of generative AI projected to rise 83% in the same timeframe — in part to combat the rise of generative AI fraud.

These technology investments will bolster the 18% of professionals who currently count AI and machine learning among their fraud-fighting tools. However, the ACFE noted that many organizations struggle with implementation, despite their stated intentions. The most common reason for implementation difficulties is budget.

Still, 59% of the respondents said they plan to increase their anti-fraud technology budget in the next two years. In contrast, only 6% said they plan to decrease budgets.

Read more:

GenAI in anti-fraud tech expected to triple