Adrian Johnson
TLDR:
Key Points:
- AI and machine learning can augment but not replace accountants
- Accountant talent is in high demand with a shortage of 340,000 new accountants needed
In a recent article by Scott Ball on Resourceful Finance Pro, it is highlighted that AI and machine learning can augment but not completely replace accountants. The “Big Four” accounting firms agree that AI is best at sorting and to a lesser degree analyzing established data, while accounting is always changing based on incoming data.
According to a whitepaper by Rightworks, 73% of accounting firm leaders are not using AI, but 88% believe that technology positively impacts workplace efficiency and client services. However, only 35% plan to implement AI in the near future.
Accountant talent is in high demand with a shortage of around 340,000 new accountants needed. Some states are lobbying lawmakers to reduce the 150-hour requirement for the CPA exam to attract more college students. Strategies for addressing the shortage include outsourcing work to foreign contractors, hiring younger workers, and preferring full-time employees over contractors.
While AI worries many accounting leaders, with concerns about accuracy and data privacy, the majority admit they don’t know enough about AI and want to learn more. The Public Company Accounting Oversight Board is warning accounting firms about high error rates and the responsible use of AI tools in audits and financial reporting.
In conclusion, the accounting industry is facing challenges with a shortage of talent and concerns about integrating AI into their operations, but there are strategies and opportunities for growth and improvement.
