AI in accountancy and audit
We do a deep dive into the truths and myths about the role of artificial intelligence (AI) in the market and its impact on the future of the accountancy profession.
In the dynamic realm of modern accountancy, AI has sparked discussions, speculations, and, at times, unwarranted fear. Contrary to Hollywood’s sensational portrayal of autonomous AI systems akin to Skynet in The Terminator, the reality in South Africa, as well as globally, is less dramatic. AI’s self-learning capabilities are limited without human intervention.
THE REALITIES
The landscape of accountancy and audit has witnessed a significant transformation, with AI playing a pivotal role. Although AI excels in complex tasks and data analysis, it falls short of being a self-advancing replacement for human accountants and auditors. Let’s explore the realities and dispel the myths surrounding AI in the South African accountancy profession.
- Truth #1: AI enhances a professional’s efficiency − AI’s primary function in accounting and auditing is to enhance efficiency. It has significantly reduced the time spent on routine tasks, allowing professionals time to focus on strategic financial planning and delivering valuable insights. The human touch in interpreting and explaining results remains invaluable and is a lot more valuable to our clients than the preparation of these results.
- Truth #2: AI requires human oversight − A prevalent myth is that AI can function autonomously. In truth, AI systems necessitate continuous human oversight. They lack the ability to make judgement calls or interpret complex financial situations without the guidance of experienced professionals. While AI can assist in decision-making, human intuition, creativity, and ethical judgement are irreplaceable.
- Truth #3: AI cannot replace human expertise − While AI excels at routine tasks, it cannot replicate human expertise, especially in navigating complex regulatory frameworks and unique financial challenges. The human touch provides an irreplaceable depth of understanding. Additionally, AI systems can quickly become outdated and provide inaccurate insights without the critical review of experienced professionals to review the work product before using it in service delivery.
The overhype surrounding AI in accountancy stems from fears of job displacement and the misconception that AI will entirely replace human professionals. In reality, AI is a tool that enhances a professional’s capabilities, debunking the unfounded fear of Skynet-like takeovers. This overhype is merely a factor of naivety, a lack of understanding and irresponsible marketing.
AI systems, including those in accountancy, require extensive training, data, and human expertise. They aren’t self-advancing entities but learn and improve based on human guidance and quality data. Professionals increasingly view AI as a valuable resource, streamlining work and providing deeper insights, but it’s acknowledged as a tool, not a general replacement for experienced professionals. Microsoft refers to their AI suite as a ‘Copilot’ because they understand that the human in the loop is still supposed to be the pilot making the ultimate judgement call − Especially where trust is the product we sell.
In conclusion, these truths about AI in our profession far outweigh the myths. AI is a valuable ally, enhancing a professional’s work without replacing them. Dispelling the misconception of autonomous AI is crucial: AI’s effectiveness relies on human involvement. It’s a powerful tool complementing professionals rather than a looming adversary.
This article, crafted with the assistance of GPT-3.5 from OpenAI, was written under the patient guidance of the author. Click here to see an image which was generated using Bing Create and the capabilities of DALL·E 3.
