AI and Accountancy: Is the rise of artificial intelligence cause for concern or optimism?

With the recent rise of generative artificial intelligence (AI), which is now at the fingertips of many, professionals across a range of industries, including accountancy, are worried about the threat AI might have on their jobs. Take OpenAI’s sophisticated chatbot ChatGPT for instance; it’s a widely accessible AI tool that is beginning to change society as we know it.

Whilst the fear of being replaced by generative AI is understandable, there’s no denying the positive impacts these evolving technologies could have within the world of accountancy.

The benefits of AI

Automating repetitive, admin-based tasks – such as data entry and generating invoices – can save accountants precious time, as well as improve efficiency. Completing these time-consuming tasks manually could leave room for human error, whereas ChatGPT is believed to produce faster and more accurate results, at a considerably reduced cost, thus potentially increasing productivity.

Accountancy and finance professionals will similarly reap the rewards, as less energy spent on potentially tedious tasks that can be automated makes times for more strategic, complex and high-value activities. This could lead to more fulfilling careers in accountancy, whereby professionals can spend more time on the value-added tasks they enjoy the most.

ChatGPT can also be used as a tool for information, to learn new things, gain enhanced insights, observe trends and keep up to date with the ever-changing industry, driving new knowledge and innovation as opposed to job losses. It may also give organisations a competitive advantage.

The risks associated with AI

Although AI has the potential to augment a career in accountancy, and ChatGPT’s capabilities are far-reaching, it’s important to be aware of the limitations of this technology. For example, using ChatGPT for guidance when it comes to methodology and standards could run the risk of inaccurate results, as the chatbot may not know that UK financial reporting standards differ to other places. Human beings are far better at putting information into context, as well as deciphering which information is relevant today. The best way of getting around this is to always check the results before trusting them.

Another notable risk is cyber security; accountancy often involves the handling of confidential client information or valuable personal data, which could be vulnerable to cyber attacks and data leaks with the use of AI.

Once acknowledging the various risks, it’s important to assess the ways accountants can adapt to, and work alongside, AI, since it shows no signs of going anywhere any time soon.

Ways to respond to AI

If anything, the recent emergence of such accessible AI shines a light on the importance of human skills that are irreplaceable, such as creativity and critical thinking. Accountancy professionals should ensure their soft skills – communication, interpretation and problem-solving to name a few – are continuously developed, to feel less threatened by generative AI.

Unsurprisingly, a willingness to adapt to change and learn how to utilise AI is beneficial in today’s digital age. Be open to training and development opportunities that will allow you to be assisted by AI in the future. Armed with this knowledge, accountancy professionals can be mindful of the flaws of AI, as well as the positives.

Undeniably, AI could pose a risk to job security when it comes to certain roles, hence why it’s crucial to be adaptable, flexible and proactive. If new technologies can carry out an aspect of your role and some of your responsibilities, become an expert in the area that AI hasn’t got the capability to compete with by upskilling. On top of this, develop existing talents to help future-proof your career.

Although humans will continue to play a central part in the future of accountancy, AI will inevitably be in the picture, so it’s about collaborating with these sophisticated technologies to complement success, facilitate innovation and boost careers in the sector.