GPT and Me #1: AI vs. Accountants

The field of accounting has always adapted to the improvements in modern technology. From abacuses, to handheld calculators, to teller machines, to modern Excel sheets, accountants have stayed at the head of their game - but now AI and automation are changing things up. 

AI has transformative potential in accountancy - it helps to cut down human errors, and speeds up record keeping. It can sort transactions on its own, giving quick and accurate financial details. Beyond using AI for writing and improving the tone of emails and keeping meeting transcripts, the State of AI in accounting report found that over 41% of accounting firms are using AI to automate activities and increase efficiency. AI also has the the ability to forecast revenue, cash flow and budget trends. These supercharge the individual efficiency of accountants, leading to the growth of a global software market for AI accountancy products such as QuickBooks. These technologies particularly revolutionize the playing field for small businesses, who usually can't afford to hire accountants.

So what are actual accountants required for? While many accountants celebrate the potential of AI to revolutionize the field, they do not feel that AI will fully replace their work anytime soon. Current AI tools are slow to adapt to changes and cannot engage in certain context-specific activities, like implementing tax laws. On top of that, even though AI identifies any unusual patterns, humans investigate and consider the ethics of each situation, figuring out which solution or policy would be the best way to go. 

In the future, however, many employers in top accounting firms have been looking at foregoing hiring in the next few years as AI tools develop increasing sophistication. This slump in jobs is nothing new, as the field of accounting is increasingly specialized and difficult to enter. With designations like Certified Public Accountant (CPA) or Chartered Accountant (CA) won through hours of fieldwork and grueling exams. It's interesting to see how AI will transform this field - for better, or for worse.

Thinking about how AI might affect your own career? Check out our article on career choice: https://readmomentum.co/episode-12-how-do-i-know-what-the-right-job-for-me-is/