Navigating the promise and peril of AI

As artificial intelligence redefines business operations globally, the Biden-Harris administration's forward-looking initiative to harness this technology while addressing its associated risks presents an example of responsible stewardship. 

The administration's recent request for information through the White House Office of Science and Technology Policy underlines the critical need for a cohesive strategy to tackle the challenges and opportunities AI presents, particularly for industries like accounting.

Leading firms in the sector, like PwC and KPMG, are investing heavily in AI technologies. While KPMG recently launched a new push to implement generative AI across its operations, PwC has committed $1 billion to generative AI technology over the next three years for its operations. However, the integration of AI is not without challenges, including potential job displacement, ethical dilemmas and regulatory concerns.

As accountants, our education must expand beyond appreciating AI's capabilities to understanding its limitations and potential for misuse. For instance, AI's propensity to "hallucinate" — to misinterpret data patterns — can lead to incorrect financial fraud indications and, subsequently, unnecessary audits. This highlights the importance of being able to critically evaluate AI's outputs, blending AI's computational prowess with the discernment only human judgment can provide.

Recognizing this, it's vital that our educational institutions rise to the occasion. Courses such as accounting analytics, audit analytics, machine learning in accounting and robotic process automation need to become mainstays in accounting education curricula. These subjects equip students with the necessary skills to effectively use AI tools while fostering a critical understanding of AI's operation and limitations. The ability to both leverage AI and critically evaluate its outputs will be essential for future accountants in the AI-dominated industry.

Experiential learning combined with theoretical knowledge is a critical first step in educating accountants for a world where AI is taking over more of the economy. Partnerships between educational institutions and industry leaders like PwC and KPMG can be crucial in this situation since they give students invaluable first-hand exposure to the practical uses of AI in the industry.

Additionally, AI education needs to be institutionalized at all levels — from schools and community colleges to universities. This includes providing sufficient resources for teachers and instructors to upskill and reskill, ensuring they are adequately equipped to teach AI concepts. Government support in the form of funding and policies can facilitate these necessary investments in AI technology, teacher training and curriculum development.

Finally, regulatory bodies and professional organizations must act swiftly to establish guidelines and ethical standards for AI usage in accounting. Such proactive regulation is necessary to maintain trust in both the technology and the accounting profession.

As accountants on the cusp of an AI revolution, we have a unique opportunity to shape the future of our industry. We can make sure the accounting profession is prepared to embrace AI's revolutionary potential by integrating a thorough understanding of AI into our education, encouraging collaborations between academics and industry, and supporting the upskilling and reskilling of our educators. This future-oriented strategy supports the shared commitment to navigate the revolutionary impact of AI responsibly and is in line with the Biden-Harris administration's goal.