As businesses integrate advanced technologies within their operations, Artificial Intelligence (AI) is making its mark in a big way. The Big 4 accounting firms’ emphasis on AI indicates its potential in the accounting industry. CPABC needs to create strong frameworks for successful implementation of AI systems. This will not only allow firms to better address the needs of the client, but also to to create monetary benefits for the industry. There are 3 main focus areas for CPABC’s next steps:
- Revised CPA Curriculum
- Marketing Campaign
- Appropriate Regulations
Revised CPA Curriculum
Since AI has proven itself to be essential for efficiency in the accounting workplace, employee layoffs are inevitable. CPABC will need to strengthen accountants’ skills in utilizing AI systems. This can be done by establishing more professional development conferences to equip accountants with a focus on future technologies. As the organization responsible for actively training over 5,000 Chartered Professional Accounting (CPA) students and managing over 36,000 current members, CPABC should re-structure the CPA curriculum. The educational revamp will include mandatory learning sessions that provide members with enough knowledge to leverage AI and Machine Learning. An immediate curriculum adjustment will support the major accounting firms’ large investments in technological integration. Together, these steps will ensure no discrepancies between incoming and current CPA’s. Lastly, it is crucial for CPABC to establish a new policy pertaining to layoffs that highlights the grounds on which employees can be fired. This action helps prevent lawsuits for wrongful termination through its established clarity.
Marketing Campaign
As implementation of AI and Machine Learning nears, industry-wide resistance to change from both firms and clients within the accounting industry is expected. If this resistance persists, the technology available to the accounting industry will only cause inefficiencies. Since the potential of AI far outweighs the possible risks of integration, we recommend CPABC invest in marketing the benefits of these new technologies. By promoting how AI will provide clients with enhanced services like greater foresight and transparency, the perception of these changes may shift to become more positive.
Adequate Regulation
From the viewpoint of CPABC, automation poses a serious concern to data security. Hence, simple policies can be used to contain the majority of threats. Using thoroughly tested protocols when designing AI algorithms reduces the risk of breaches within the system. Contrary to popular belief, AI can actually enhance cyber-security by automating threat detection and response. Many cybersecurity firms have started using AI to identify threats more effectively when compared to any other software. Therefore, AI on its own provides solutions to potential data security threats associated with automation. However, CPABC must ensure Machine Learning stays at a level where humans can stay in control of the technology.
Since accounting firms will be able to use AI, CPABC should institute regulations on the necessity of being accurate and reliable on financial statements. There are increased privacy concerns regarding the usage of large data which need to be addressed. In order to mitigate this issue, CPABC should increase its IT department’s budget and labour to properly regulate accounting firms using these new technologies. The plan would include IT check-ins with CPABC’s member firms to ensure accountability regarding client data. While this technological shift occurs, the ultimate purpose of the IT teams is to maintain the confidence and trust placed on firms within the accounting industry.
Key Takeaways
Within the accounting industry, there is high competition, but low differentiation amongst the Big 4 firms. With the firm’s constantly looking for a way to differentiate themselves, what better way to do so than by embracing AI and Machine Learning? That’s why CPABC, the accounting governing and regulatory body, must be proactive in advance of Industry 4.0. JZ Management has created a strategic plan that can lead to seamless integration of AI, while protecting clients’ interests. Being a pioneer of this trend will provide a great opportunity for CPABC to not only maintain their reputation as a proactive organization, but also to reap the benefits from the technological advancements within this field.
Image source: WorkWise Software
As AI like ChatGPT advances in generating writing, retaining the human touch remains vital for impactful communication. While bot-created content offers expediency, it often lacks authentic perspective. As technology progresses, keeping sight of nuanced human values must stay central when connecting through shared words.
This article dives into the potential of AI in accounting, predating the rise of large language models like ChatGPT. While it focuses on the Big 4 and CPABC’s role, the core message – AI’s impact on financial services – remains relevant today.