Generative AI in Accounting and Finance Operations
Generative artificial intelligence (AI), including tools such as ChatGPT, is being looked at to automate aspects of accounting and finance operations, promising to transform the repetitive tasks typically associated with these areas. Although concerns over data security and reliability exist, especially in sensitive areas like finance, CFOs are keen on the efficiencies that could be garnered.
Initial Trials and Current AI Use
The use of generative AI in finance is being trialed in relatively small applications initially, such as predicting analyst questions during earnings calls, researching competitor calls, and answering internal queries on accounting policies. AI has already been incorporated into many business operations, including robotic process automation for payroll data and expense report processing, as well as machine learning for financial scenario predictions and cash flow forecasting.
The Evolution of Accounting Roles
Despite the potential for AI to automate tasks traditionally done by accountants and auditors, such as report, document, and presentation creation, this doesn’t mean job cuts are inevitable. Instead, the role of the accounting professional is expected to evolve towards data science and systems engineering, as the technology allows more work to be offloaded.
Varied Expectations on Generative AI Integration
There are varying expectations about when and how generative AI will be fully integrated into existing systems. Companies like Oracle predict that by year-end, more businesses will use generative AI for tasks such as creating drafts for reports. However, the timeline for some CFOs stretches into the next decade, as they explore how generative AI can aid in drafting business transactions, financial reports, and statements.
Generative AI in Auditing
The transformational potential of generative AI also extends to the auditing of financial statements, with tools capable of summarizing large volumes of data, including audit results, and generating code for use in data analysis. Companies like PwC plan significant investments in generative AI, partnering with Microsoft and OpenAI to automate aspects of tax, audit, and consulting services.
Concerns and The Future of Accountant’s Roles
While the increased reliance on AI for crucial tasks does raise concerns about data security and accuracy, experts maintain the importance of the accountant’s role in ensuring data integrity, particularly in the integration of AI into finance. As such, AI’s adoption in these sectors isn’t seen as a replacement for human professionals, but as a tool that will lead to a transformation of their roles and responsibilities.
