Increasingly, AI is creating change across industries. As the technology improves, AI is able to accomplish more than ever. If you work in accounting, chances are, you have two key questions. First, how can AI benefit you and make your job easier? Second, what is the negative impact and what are the odds that AI is going to end up taking accounting jobs or replacing you?
AI, or artificial intelligence, is seeing increased use in the accounting industry. It can take care of basic data entry and analytics, expense and payroll processing, and reporting. In addition, AI can forecast trends based on a comprehensive analysis of multiple contributing factors.
The Rise of AI and its Impact on Accounting
Artificial intelligence has the potential to revolutionize many industries. It has been used to improve accuracy, decrease response time, and streamline daily business operations. In many cases, it can reduce the man hours needed to accomplish basic tasks, allowing many businesses to decrease payroll or making it easier for employees to focus on higher-order tasks that can make a huge difference in their overall productivity.
Current Trends
There are several ways AI is currently reshaping the accounting industry.
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Automated processes, including payroll and data processing
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Detection of outliers or incorrect data
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Analytics
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Commentary on financial reports
As a result of this increasing capability, many businesses are able to access more information about their financial outlooks and processes.
The Positive Impact of AI in Accounting
AI offers several essential benefits in accounting.
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Increased efficiency
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Enhanced accuracy
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Cost savings
With these benefits, it comes as little surprise that more accountants and businesses than ever are choosing to use these tools to streamline operations and improve overall capability.
Learn more: New Strategies for Experimenting with More AI in Your Accounting Processes
The Accounting Roles Most Likely to Be Replaced by AI
AI cannot provide the human touch that many accountants bring to their roles. Many higher-capacity roles cannot be replaced by artificial intelligence, though those tools can go a long way toward improving employee capability. However, some roles are closer to being replaced by AI than others.
Data Entry Clerks
Many data entry clerks complete primarily routine tasks that can be easily automated. As a result, they may be at more substantial risk of having their roles replaced by AI tools. For example, AI can handle automated data capture and processing, which means it can take on the role of several data entry clerks.
Bookkeepers
Bookkeepers are typically responsible for repetitive and rule-based tasks--the type on which AI thrives. They have to check over the numbers, take a look at sales and purchasing, and other key tasks. AI is able to easily take on those challenges. Automated bookkeeping software is already available that can manage many of the tasks traditional bookkeepers usually do.
Accounts Payable/Receivable Clerks
In accounts payable/receivable, clerks handle transaction processing that can typically be handled by AI systems, often much more inexpensively than with human workers handling those tasks. For example, many systems are choosing to use invoice processing automation that automatically manages invoices as they come in.
Payroll Clerks
Payroll clerks take on a number of standardized processes that can be managed by AI. For example, they are often responsible for processing hours worked and managing payroll. They may also need to check for accuracy and ensure that those checks go out on time. However, automated payroll systems can handle all of those tasks with little need for human intervention.
Accounting Roles Less Likely to Have a Negative Impact by AI
While there are many accounting roles that could potentially be replaced by AI, there are others that are more secure, even as the shape of the industry changes and AI is able to take on increasingly complex tasks.
Financial Analysts
Financial analysts take on tasks that require complex analysis and strategic decision-making. Some of the factors they look at are very difficult to automate. For example, they may handle the interpretation of financial data to provide insights to a company or individual. Financial analysts may make personalized recommendations about future spending and other tasks. These decisions are much more difficult to hand over to an AI.
Auditors
Auditors must exercise professional judgment and take ethical considerations into account when navigating their daily responsibilities. They are responsible for ensuring compliance and assessing risk: a task that AI may not be able to handle with the same degree of accuracy or subtlety. Furthermore, auditors often take the human element into account--something that AI is simply unable to do.
Management Accountants
Management accountants take on strategic planning and advisory roles. They handle budgeting, forecasting, and advising management: all tasks that simply need the human touch in order to be effective. AI is often unable to understand the full scope of the business's ethics and focus in the same way, which make s it more difficult for it to offer that essential advice.
The Future of Accounting: Collaboration Between AI and Humans
Increasingly, AI is showing up across the accounting industry. However, that doesn't mean that it's going to replace humans. Instead, the future is collaboration: humans interacting with AI in order to improve overall outcomes.
Augmented Intelligence
AI is often able to function in ways that humans cannot. It is highly accurate and able to take in large quantities of data quickly and effectively. At the same time, however, it is unable to replicate human thought patterns and processes, including gauging importance of a number of essential factors. As a result, while AI will likely continue to increase in importance and capability, it will be used to augment human capability, rather than replacing human input.
Skill Evolution - Overcoming Negative Impact of AI in Accounting
Increasingly, human accountants must learn new skills in order to function in an AI-driven environment. That may include:
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Technical expertise, including knowledge of the latest AI systems
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Creativity
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Flexibility
As the industry continues to adapt to these new tools, accounting professionals must adapt along with it.
Human Oversight
Using AI can provide a number of potential advantages. However, human oversight is an essential part of that process. Human judgment is a key element in complex financial decisions. Without it, many businesses and accounting firms may find that they are unable to deliver the high standard of service needed.
Preparing for the AI Revolution in Accounting
The AI revolution is coming--and savvy accountants are preparing for it.
Upskilling and Reskilling
Look into accounting programs that will allow you to develop new skills and update your current ones, including those offered by local universities.
Embracing Technology
Take advantage of the latest AI tools and use them to enhance your work. Stay familiar with updates in the field and how they can help you in your daily responsibilities.
Mitigating the Negative Impact of AI: Adaptation Strategies for Accountants
Strive to incorporate AI over time, particularly as usage grows. Try:
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Providing training for existing employees
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Selecting tools that fit your needs
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Working with accounting providers who use those essential tools
Over time, you'll find that AI tools become second nature, making it easier for you to accomplish your goals.
Harnessing AI for Accounting Excellence
As AI tools become increasingly common, accountants and accounting firms alike must stay aware of those trends. Stay informed, and be proactive about learning to use those tools and take advantage of them.
By understanding and addressing the potential negative impact, organizations can harness the full potential of AI in accounting. Personiv offers comprehensive financial services, to help businesses navigate the evolving accounting landscape. Contact us to learn how we can support your financial goals.
FAQs
Is AI going to take my accounting job? ↕️
Some accounting jobs, including bookkeepers, data entry specialists, and payroll clerks, are likely to see a decline in available jobs as AI becomes increasingly vital. Other jobs, like financial analysts, remain fairly secure despite the rise of AI.How can I prepare for AI as an accountant? ↕️
Take a look at the latest AI tools in the accounting industry and how they can help you. Learn how to use them early so that there will be less of a learning curve later. In addition, seek out extra skills training to help prepare you for the future.
Resources
AI is Taking Over Accounting Jobs as People Leave the Profession
