By Vladislav Maličević

Since the Industrial Revolution, the world has become increasingly automated as businesses chase the continuous goal of heightened efficiency in production and workflow. The accounting industry has not been left untouched: from dusty ledgers to Excel spreadsheets, the power of artificial intelligence (AI) and machine learning represents the next step forward.  

Love it or hate it, AI is here to stay. The impact of AI on the accounting industry and the clients they serve will have far-reaching consequences. While AI can heighten accuracy, issues of privacy also arise. The changing landscape is calling for a new kind of finance leader, one who leverages the power of AI while keeping a pulse on the human workforce and the clients they serve.

According to Stanford University’s 2023 AI Index report, the finance and insurance sectors, among the top 15 major industries, have seen one of the largest upticks in AI-related skills required to do the job.¹ This need demands a new skill set, not only for the existing and incoming workforce, but also for the finance leaders running the business.

AI Has a Renaissance Quality

The accounting industry is at the beginning of an AI renaissance. Like the internet, generative AI is becoming a popular and democratized resource, ushering in a transformational tool exemplified by the likes of ChatGPT among others. While the creative process includes disruption that has the potential to be used for nefarious purposes, beautiful things can be created by it. When applied correctly, AI can save accountants a great deal of time by automating manual tasks. The AI genie has left the bottle, so how can we safely embrace, explore, and leverage it to the betterment of the work we do?  

AI Is a Partner

The relationship between humans and AI is symbiotic, much like an exoskeleton is to a living being: it moves, supports, and protects, but it has no purpose or function without the organism within. In other words, AI is a tool in your toolbox, but it is one that shouldn’t be used without understanding both its capabilities and limitations.  

While AI can take the grunt work out of the daily routine, its end user is ultimately a human being. Accounting systems leveraging AI’s power still require human oversight to achieve their full potential.  

Be Discerning, Not Dismissive

Using AI requires a certain mindset of discernment, not dismissiveness. A discerning approach to AI, as to life, is one where we explore, assess, question, validate, and then accept or discard the results. It’s far superior to a dismissive approach in which everything new, uncomfortable, or challenging is ignored or denied.

Data are not biased, but human beings are. We tend to dismiss information that doesn’t align with our biases. Interestingly, AI is based on the information we give it. Drawn together across all biases, AI can help provide input and synthesize data that human beings cannot. Time is our most valuable resource, and the benefits of AI in maximizing our productive use of time are well established. Will we be discerning or dismissive when confronted with the opportunity to explore and deploy AI?  

AI Can Augment Our Potential

The foundational layers of technology have already been established, but AI has introduced a new set of parameters for accountants within which to maneuver. Now that we have the computing power to deploy AI at scale, generative AI and predictive analytics represent an entirely new frontier. The data AI uses represents a vast collection of the artifacts of human history and, now that we can all casually interact with AI, it is a mirror that reflects us in a new light. Humans have long explored technology. Now, AI can interact with and explore our humanity in mind-blowing ways. Given the growing presence of AI, we will find ourselves discovering and leaning more into the characteristics that make us uniquely and distinctly human, such as our abilities to be creative, have integrity, show empathy, and engage in critical thinking.

AI Bias and the Process of Deselection

The human-originated data that feeds AI and the predictions or analyses it creates can carry the risk of bias. If we want AI to be unbiased, we need to provide all the data we have at our disposal – not carefully selected pieces and parts – because machines can exacerbate inequality when provided with selective information only. How we use technology must reflect the values that lie at the heart of our organizations, and we must embed those values into work that creates business value. Using AI to deselect these biases offers organizations a new way to correct inequality and inequity in the workplace and in society at large.

The fact that AI carries the risk of bias does not render it unusable. Rather, we must hold ourselves accountable and consider how AI may reflect or enhance bias.

The accounting industry relies on its reputation for accuracy. When used properly, AI can provide a chance to achieve that end, giving accountants even more confidence to make human decisions based on the data generated with the help of a machine.

¹ https://hai.stanford.edu/news/2023-state-ai-14-charts  

Vladislav Maličević is chief technology officer of Jedox, a leading global enterprise performance management solution provider. Maličević works closely with partners and customers to troubleshoot their toughest challenges. He can be reached at info@jedox.com.

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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.