There’s no denying the fact that chatGPT has transformed many a workplace. The world of technology is changing and evolving at such a rapid rate, and it seems that most of that is down to AI. But how can accountants make the most of this new technology, apply it’s best practises and break away from traditional ways of working? Can AI really streamline accountancy, making it more efficient and employees more productive, or does this industry still need to rely on manual tasks for reliability and accuracy?
Yes, there can be some limits for accountancy firms. First and foremost, many firms will need to overcome employee reluctance to take it on, with even the most progressive teams meeting with initial resistance. And it’s true, implementing AI can be frustrating and a challenge which many may view as just not being worth it.
There may also be an issue when it comes to data, especially for smaller firms who simply don’t collect enough for specific analysis to be worthwhile. It can be costly to gather that data, and costly to store it too- plus integrating new and challenging systems and processes is a step that many organisations might feel may not bring value to the business.
Lastly, accountancy firms need to ensure they understand the importance of cybersecurity and to assess the risk of data breaches. This is always a legitimate concern when it comes to implementing new technology; we now live in a world where hackers are indeed aware of how valuable data is, so internal practises need to be robust in order to protect data. And the risks are higher for the accounting and finance sectors too.
All of this being said, can accountancy firms safely and reliably use AI software, or are the risks too great?
Ultimately, AI can only work with human interactions to support it, so trust is huge when a firm decides to take it on. Employees need to know that AI is not there to replace the valuable analysis that accountants do- rather, it’s there to support them. They need to understand how it works, what it’s aims are and what it needs to do the job efficiently. Employees also need to see that AI can get the job done, and the benefits of handing over the more mundane tasks to a machine. So what are those benefits?
AI can adapt to evolving responsibilities within the company. It’s able to streamline it’s own daily tasks, leaving employees free to take on the more complex pieces of work that have always required an extra level of competency. The smaller, more mundane tasks can be taken on by AI reliably, and when employees are trained to analyse the resulting data, they then begin to develop a whole new skill set overall.
What does this mean? Broadly speaking, implementing AI could radically change the way that accountants work- by equipping them with valuable data skills and a keen understanding of how to analyse data streams, meaning they’re more able to implement critical thinking for decision making.
The truth is, whether AI is only permitted to automate administrative tasks, or whether it’s there to analyse more complex data streams- accountancy firms need to take advantage of it now, to stay ahead of the game. And we’re seeing this in the way that some firms are already using it, and succeeding.
AI is making space for accountants to focus on important tasks, such as client-facing meetings, or those tasks that require more complex skills. Using AI means that employees no longer need to spend time on smaller, more mundane tasks which are repetitive and time consuming- and the results really do speak for themselves.
And when used in conjunction with predictive analysis, AI widens the potential to do more with the valuable resources a company has, and with the capability for analysing vast amounts of crucial data too.
So should your firm be using AI? In a word, yes. AI can be such a valuable tool, and especially when used alongside predictive analytics. Even the smallest startups can benefit from this new way of working; AI can free up staff to put their skills to better use, increasing productivity, boosting staff morale and increasing profits. It’s essential for any firm that truly wants to stay ahead of the game- so make it top of your priority list for 2023.