Artificial Intelligence (AI), Machine Learning (ML) and robots are taking center stage in workplaces across the globe, while not that long ago it was thought to be things only found in science fiction films. AI is replacing job positions in several industries (e.g. retail, manufacturing, agriculture etc.) and the revolution is not expected to slow down anytime soon. It is anticipated that by the year 2030, 800 million jobs could be replaced with AI (Finance Voice, 2018). As AI technology advances and becomes more powerful, white-collar workers, as accountants, are starting to worry about their future career. Will AI technologies make accountants obsolete?
AI technology is able to complete repetitive tasks at just a fraction of the time it takes humans, with greater accuracy. Furthermore, Machine Learning allows AI platforms to analyze, observe and self-learn data and processes to improve its accuracy over time. AI technology is already capable to handle many accounting functions such as payroll, audit and tax preparation. A big concern is that AI technologies will replace the need for companies to work with accountants at all.
Some say that the new AI technologies does not mean the end for accountants. Their argument is that there will always be a need for that human element – human intelligence – at the other end of AI technology. Accountants need to exercise professional judgement and professional scepticism, which AI technologies and machines cannot. However, accountants should use data analytics and risk and valuation tools to provide, objective, independent and unbiased financial statements. This results in enhanced public confidence and trust (RSM,2018).
Will AI technology at some point make accountants obsolete? What is the whole point of hiring professional accountants when you can simply invest in a good account software that would carry out all the finance and accounting tasks on your behalf? Or will AI technology and accountants work together instead of replacement? For the sake of professional judgement and scepticism.
References:
Finance Voice. (2018). Is artificial intelligence set to replace accountants in the future. [online] Available at: https://finance.toolbox.com/articles/is-artificial-intelligence-set-to-replace-accountants-in-the-future [Accessed 1 Oct. 2019]
RSM. (2018). Why machines and artificial intelligence will not replace accountants. [online] available at: https://www.rsm.global/singapore/news/why-machines-and-artificial-intelligence-will-not-replace-accountants [Accessed 1 Oct. 2019]
Thank you for sharing this post. You make a very valid point, seen that not only ‘easy’ tasks such as payroll, audit and tax preparation can be taken over by A.I. but also fraud detection can become more accurate.
You can find more about this here: https://www.forbes.com/sites/theyec/2018/06/04/artificial-intelligence-and-the-future-of-financial-fraud-detection/#9f2f41e127a6
However, I think we should also take the ethics of A.I. into account. One of our readings states “Garbage in, garbage out”, applied to A.I. this means that the input given to the system also determines how it comes to conclusions.
Overall, good food for thought!
Thank you for you contribution! I think the way we execute jobs like these now, will slowly, but surely, completely change due to automation and AI. You could compare it to period before the industrial revolution; the vast majority of the working population worked in agriculture. Now, due to the industrial revolution and evolution of technologies, this is hardly 5% (ourWorldInData.org). New jobs have emerged, and old jobs have been extincted. The opportunity lies in how to involve humans in this shift to automation and AI. The sectors that are in great danger like banking, accounting and the legal sector should start to think of other business models in order for employees to survive.