AI
AI in Accounting: Charting a New Course Forward
As someone who has deeply involved in the field of what is collectively referred to as “generative AI,” I don’t feel the need to start off this post by acknowledging its buzzword status, potential existential impact, or my utter disdain for “hallucinations,” which my co-founder, Mike, correctly pointed out as “…fancy branding for ‘it’s just wrong.’”
At least to start the blog. That seems a little abrupt.
Recently, for an episode of Blood, Sweat & Balance Sheets — my first appearance on the show, which I’m actually totally fine with — the FloQast co-founders sat down to talk about all things generative AI. From the highest levels to the deepest valleys of hallucination, Gen AI’s potential, and its drawbacks, and, most relevantly here: How we see it impacting the accounting profession — now, and down the road. Here’s a section I found particularly interesting.
Addressing the Accounting Talent Shortage with AI
For years, the accounting profession has been grappling with a significant talent shortage. Now, people are actually talking about it.
As Mike put succinctly: “There’s a huge talent shortage in accounting. Fewer people are majoring in it, people are leaving the field, but with that, business continues to expand.”
Capitalism marches on.
That’s why the shortage has made it imperative for us to harness AI’s potential. In my view, AI presents a unique opportunity to bridge these gaps and alleviate the burden on overstretched accounting professionals.
Evolving Roles: From Number-Crunchers to Strategic Advisors
Traditionally, accountants have been seen as number-crunchers. I feel like we’ve been saying that for years, but I’ve been working on FloQast for over 10 years now, and the narrative still seems true, somehow.
As Chris, [Sluty, CPO] sees it “The role of the preparer comes into more of a role of a reviewer.” And I could not agree more.
My take on this is that AI allows us to pivot from mundane tasks to more strategic roles. This shift not only enhances our value as professionals but also aligns with the growing expectations from businesses for accountants to provide deeper insights and strategic guidance.
One of the most exciting aspects of AI is its potential to enable us to do more with less. In the context of the ongoing talent shortage, this becomes particularly critical. By automating routine tasks, AI empowers accountants to focus on higher-level analysis and strategic initiatives. This efficiency means that despite having fewer resources, we can still deliver exceptional value and insights. It’s about working smarter, not harder, and ensuring that every action contributes to the larger business objectives.
Reflecting on this, Mike said, “AI is not just about replacing tasks but enhancing capabilities.” This idea resonates deeply with me. AI should act as a partner to accountants, helping increase productivity and allowing more time for strategic decision-making. This partnership is essential to ensuring that accountants continue to play a critical role in guiding businesses through complex financial landscapes.
Balancing Innovation with Integrity
Yet, with great power comes great responsibility. AI, while a powerful tool, can also be susceptible to manipulation, posing risks such as fraud.
“Everything comes back to an audit and accounting,” said Chris.
The integrity of financial data is paramount, and human oversight is essential to ensure AI systems are being used ethically and effectively. My perspective is that human judgment remains irreplaceable. We need to ensure that AI complements our work, enhancing rather than compromising the trust in financial reporting.
Looking ahead, the future of accounting is promising. AI isn’t here to take over but to augment the capabilities of accountants, allowing them to engage more deeply in strategic conversations and innovation. Our profession is on the cusp of an exciting era, characterized by adaptability and a renewed focus on adding strategic value. Accountants who embrace these changes will find themselves indispensable, driving businesses forward.
Embracing the Future: AI as a Catalyst for Change
In conclusion, while AI ushers in both challenges and opportunities, those who embrace technological advancements and adapt to new roles will find themselves leading the charge in business strategy. As the landscape of accounting continues to evolve, accountants’ roles will be more vital than ever, guiding businesses through the complexities of modern financial environments. Let’s embrace this future together, ensuring we remain indispensable to the organizations we serve. The journey is not just about survival — it’s about thriving and reinventing the standards of our profession for generations to come.
