While artificial intelligence is by no means a new technology, its parameters are constantly shifting, thanks to the introduction of new AI tools, thereby revolutionizing what AI makes possible. It's for this reason that headlines across the media have recently been awash with mention of ChatGPT and all its ramifications, including its impact on accounting professionals.
Like people in most other industries, professionals in the accountancy world have questioned how AI tools like ChatGPT will impact their roles, specifically whether the technology is a threat to their jobs. It is important to acknowledge that AI, like any other advancement in technology, is simply a tool that can and should be used by professional accountants to improve the quality, efficiency, and effectiveness of their services.
While AI does have the ability to take on some aspects of an accounting professional's role, there's no reason to fear the worst just yet. AI and technology in general are not going to take over the work of professional accountants in a hurry. It's important that we see them as enablers in providing clients and the industry at large with more value-added services.
Shifting accounting beyond the numbers
Burying one's head in the sand when it comes to AI is simply not an option. Instead, accountants should aim to embrace the technology for all its benefits, using it as a tool to move away from data capturing and the stereotypical notions of "number crunching" typically associated with the profession, and into the analysis of data in ways that only human accountants are capable of.
This is the opinion of the South African Institute of Professional Accountants, having expressed its stance on AI as an enabler of innovation in the profession and a gateway for accountants to enhance their skills in areas relevant to the fourth industrial revolution.
SAIPA endorses the use of ChatGPT and other AI chatbots as a means for professional accountants in conducting research and gathering data to support management with decision-making and problem-solving. SAIPA is in the process of revising its education and assessment models to this effect. However, the focus of learning will be on interrogating the information gathered to support the development of critical thinking, professional skepticism, problem-solving and professional judgment.
Looking at AI from a more positive perspective in this way reveals a number of advantages for the accounting professional with a future-focused mindset — that is, one who hopes to remain relevant by keeping their skills, experience and services in adherence to the ever-changing demands of modern businesses.
For instance, AI can assist in enforcing corporate policy by identifying noncompliance issues and errors in financial data. It can also streamline the data entry and analysis process by recognizing and categorizing financial transactions from receipt images, using this to provide accurate reports that managers can peruse and analyze far more efficiently. In both instances, technology frees up the accountant's time to focus more on information analysis.
Where fraud and corruption are a common and unfortunate reality, AI can act as an independent auditing tool to assess transactions and reports, predict patterns and detect a wide variety of irregularities in financial data.
AI can also be used in budget forecasting to predict a company's future financial performance based on historical and current financial data, not to mention facilitating tax preparation by extracting relevant information from financial documents to be used in the creation of tax returns.
From a talent acquisition and retention point of view, AI chatbots can assist in the areas of HR recruitment and employee experience, streamlining and optimizing HR processes while offering candidates personalized insights into the skills they need to focus on developing as well as possible growth paths in the company and in their careers.
AI is not the enemy; it provides us with data, but it's certainly no substitute or replacement for human interpretation and expertise. AI is a handy and increasingly necessary companion for professional accountants navigating accounting and business in the digital age. Embracing technology in this way has a number of benefits for the individual and the industry at large, from streamlining processes to enabling accountants to take more of a data analysis and advisory role with their clients.
