Artificial intelligence products reshape accounting: time to re-train

Abstract

Purpose Managers are expected to increase productivity in the most cost-efficient manner, using all available resources and, “work smarter.” As technology improves, there is greater incentive for managers to invest in options where automation becomes less expensive than the high cost of human capital. When repetitive tasks can be accurately duplicated through automation, the decision becomes a fait accompli. Advances in artificial intelligence (AI) or synthetic intelligence that simulates human intellectual function has significant impact potential in the service sector. This paper examines productivity efficiencies sought through artificial intelligence and the need for re-training, specifically in the accounting profession. Design/methodology/approach This is a conceptual paper for practitioners without research methodology. Findings The accounting profession 10 years from now will look noticeably different than it does now. The accountants, who embrace the new technologies, like artificial intelligence, will survive and even thrive by becoming more specialized. This will require training and, in some instances, re-training. Organizations must be willing to absorb those development costs. I hope that new graduates will enter the profession with updated skills providing added value for organizations and employers who started into the profession many years ago. The biggest challenge may lie in the re-training of accountants who have been in practice for many years and managing the resistance to change. Employers must first set the example by accepting the inevitable and then encourage and support employees to improve and update their skills. Additionally, they will have to coach employees through the changes with reassurance that those who embrace the change will experience less chance of job elimination. Embracing the available technology will enable firms to serve clients more efficiently and effectively by providing up to date business solutions regardless of the services being offered. Research limitations/implications There is no empirical research in this paper. It is a conceptual piece looking at the changing organization in accounting, specifically due to artificial intelligence. Practical implications Accounting firms that focus on basic accounting functions should find new services to offer. The same clients can be served, but at a higher-level. Accountants will offer more value to clients by detecting patterns and trends when more time can be devoted to analysis. Helping clients beyond the preparation of documents requires that accountants understand the current market conditions and potential effects of inflation and, engage in more critical thinking while at the same time be able to teach clients and help them understand at the higher level. Just as accountants’ responsibilities and duties will be transformed through the integration of AI, accounting education must be altered. Social implications Implications related to the workplace are only discussed in this paper. Originality/value It is not completely original. It is a compilation of research that is out there as a means to address critical workforce training needs in accounting as technology moves forward.