In conducting a stakeholder analysis, it is evident that all parties will be impacted by the changes Industry 4.0 introduces to the regulatory environment. As the governing body of the accounting industry, CPABC will be the voice of reason between all stakeholders.

At an industry level, CPABC will be faced with addressing two key areas: the curriculum of the CPA Designation and standards set for financial reporting. Looking at the current curriculum, it is evident the CPA Designation will not be adequate for preparing prospective CPA’s to utilize AI and machine learning. Additionally, as the adoption of AI and Machine Learning enable firms to differentiate the services provided to clients, for the first time CPABC will be faced with the challenge of regulating a more disparate industry. CPABC will need to revisit the current regulations and update accounting standards to meet the identified risks that AI and Machine Learning will introduce to financial reporting.

With no precedence for regulating these technological advancements, CPABC will have to look at regulation changes that have occurred in other, similar industries in gauging what updates are necessary. Given the sizeable changes CPABC will be introducing, it is likely that resistance to change will be inevitable. During this time period, CPABC will have to work closely with firms, employees, and clients to gain their compliance.

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