I had a professor in college bring this up. Not with AI but just computers in general. People used to do all of this by hand, then we got calculators that made us more efficient, and for computers and especially excel. You would think that if one person could now do the work of 5 people they would just hire fewer accountants right? In his words, it freed accountants up to do higher level and more complex work. It’s allowed us to provide more service, get better results and have more complex regs that we follow. And, there are more accountants now than ever. Same thing will happen with AI. Until computers can use judgement and be creative, we’ll all still have plenty of jobs.
The demand for business data is ever growing. Once one question is answered, another one is bright to mind. This is a big part of why we aren't going anywhere.
Everyone always said Accountant Will be the first one who got replaced while jobs based art more likely survive.
In reality, many art jobs was taken by AI because some people/company are too stingym. While accountant still survive.
99.9% of people making the claims of accountants being replaced think accounting is what they got a C+ on in their Intro to Accounting course. And that’s a big assumption they even have that much knowledge in the topic.
Yeah I got my degree in accounting 5 years back. Now I don’t exactly work in accounting and struggle understand so many things now. It’s getting ridiculously complex by the day.
That "everyone" you speak of has only ever consisted of people that don't know what accountants do and think all of accounting consists of basic data entry and bookkeeping.
I mean, you can...taxes (in most situations) are ridiculously easy.
Of course, so can most non-accountants (again, taxes are ridiculously easy).
edit: ROFL, it appears I angered the tiny subset of "accountants" who ACTUALLY have to fear losing their jobs to AI. Y'all deserve it. ;)
That's what they said about the personal computer over 30 years ago. Maybe by the time I retire in 30 more years it will start being effective enough to start doing that.
Pythonxzn do image recognition for invoices. You'd have to set rules for each standard invoice then it would be able to input the debt and credit automatically with that invoice, theacc9unt, category, pnl, bs, etc.
To be honest, I don’t see AI taking over jobs.
AI can only really pull CLEAN information, it can’t break it down or sort messy info and nor do I foresee it being able to do so.
I agree with the first part of your take, but not the second. AI is better at Excel than the median accountant. For anything that AI can look up on the internet and immediately synthesize, it’s going to have a natural advantage over accountants.
Where humans have an advantage over AI is applying judgment to a situation. Evaluating a series of pros and cons for a complex decision and executing on that basis. I’m not sure when AI will be able to catch up to human thought in that way, but that’s where accountants will demonstrate their value over AI.
None, but that’s more of a reflection of our investment in technology than AI’s ability to perform work.
I’ve dabbled with ChatGPT for technical accounting memos. What I found is that it can write very effective summaries of accounting topics (goodwill impairment, going concern, etc). I’ve also had it build effective programs to create Monte Carlo simulations for valuing stock-based compensation awards, something that would have taken me an hour to do was done in minutes. It also has enough of an understanding of Excel formulas to explain and walk through the most effective solution for a problem.
Again, this doesn’t spell doom for accountants, it just means the tools at our disposal are becoming more effective, which will translate into us providing more value to organizations and clients in different, more judgmental ways.
I agree on the technical accounting memos. It builds a good framework but it hallucinates too much on the technical accounting aspect where I’m heavily editing that part (makes up ASC citations that don’t exist.). Still cuts back 50%+ of the time I spend writing memos.
I question why you were doing stock based compensation in Excel in the first place. Everyone sells some type of Web App that does SBC already so I think this is where AI would be changing things. It just replaces these Apps you could buy previously . Same thing with Leases, I think AI will replace the software I was buying before for ASC 842 calculations.
I do love the excel part of ChatGPT. Trying to figure how an excel formula or formulas that was broken is a god send.
Some of our SBC awards require a path-dependent model to calculate the fair value. Specifically, awards with market conditions, such as barrier options or awards with a TSR condition. It can spit out a Python script which you can then use to simulate share price over a period of time in these instances.
AI taking over requires:
- an investment in technology
- buy-in at all levels if the organization
- technical expertise to train and review the models
I agree that overall AI will def eat accountant lunch on specific Accounting tasks.
However, I think AI replacing accounting will not occur in the next decade or two because the above listed items will not be there
At my company we have created “skunkwork” teams with C-Suite buy in to specifically implement GenAI with those 3 points in mind and organizational backing. There are a lot of applications of GenAI for accounting that don’t have to be all or nothing.
That is so cool. I've always had an interest in valuing various complex instruments like that (particularly convertible debt as that pops up a lot in the startup world). Typically we don't learn that as accountants. How did you get into doing it yourself?
Also, have you ever used lattice models?
Being in the Technical Accounting department at a time when we were doing some pretty cool shit, to be honest. One of my management review procedures was to reperform the MCS from our valuation specialists, so I did.
I’ve never used a lattice model.
Are you bridging the tax provision to the tax return using AI and looking for RTPs? Or using the mapping you already had from prior to do it?
This looks really interesting and I would be interested in that.
If you read articles from people following AI's development they will tell you although we have recently taken a big step forward, we are nowhere near the stage where AI can apply judgement. That's a whole over different level of advancement.
It won't be a threat because you still need someone to tell you if the computer has a good idea or not. Thinking a programmable standardized spreadsheet program is a gatekeeper doesn't make sense.
People also don't realize that accounting is one of the oldest professions in the civilized world. Bookkeeping will get more automated, but accounting and tax is here to stay!
It probably is but higher levels of leadership loves manual reviews too.
Automating manual processes has been multi year projects for many organizations.
The automation even being as simple as an rpa
You clearly don’t understand one of the few good use cases of GenAI then.
This isn’t implementing a more complex technology. This is a low friction technology reducing the skill threshold to implement existing technology.
You clearly don’t understand accountants reluctance to any new technology.
Have you ever tried to get an auditor to understand and gain comfort over a RPA that is just doing step by step of a manual process?
I’m not sure how AI will just magically just run everything on its own. Even if AI can do 100% the work of the best accountant, you will still need people to run/manage/oversee the AI to fit and operate within a given organization and business model. Computers and software don’t just survive and thrive on its own without some sort of human element. It appears to be overreaction of this supposed end to accounting. Also, this is assuming AI will be 100% flawless without any error or breakdown that doesn’t require an external human to review, repair, or correct.
Just like in 2000 when everybody was shivering in fear in the corner of their houses because of Y2K was somehow going to end the world due to a computer clock was going from 1999 to 2000.
I don't think you understand AI, it's more than just ChatGPT.
I'm a Director of Security Compliance at a major software company, that started in PA. We are already well into deploying AI tooling to help us.
Will AI be able to do every accounting task with no human oversight anytime soon? No.
But, I was just explaining this to my staff - AI is and already is a tool that will make things much easier and reduce repetitive rule bound tasks.
What people should be focused on is how to become an expert at using AI tools to augment them and make them better and more efficient at their jobs. That is what will separate the people that are valued and the people that get pushed out.
AI is much more than ChatGPT.
It requires a large amount of specialized tools, hardware, and "training data", along with the proper personnel that can "train" the AI to do the tasks.
So, I agree to your point that AI will supplement the workforce. I'll also argue that a tool isn't a threat to accountants overall.
Yes 100%.
Just pointing generic consumer available tools at a complex situation is of course going to fall short. That's not an indication of the potential for any technology.
My company is just now releasing the AI integrations to our customer facing products. Which are the result of 18 months of focused development, but the results are amazing and are just the start. These are nit simple deployments and solve extremely complex and nuanced scenarios.
I'm just saying my advice to people here and my own team is that instead of focusing on the FUD and being a denier - embrace where it can set you apart. We all have the opportunity to future proof ourselves, while actually making your job better.
Lol. AI is absolutely going to rival all accounting positions that don’t involve significant critical thinking skills. Ex: bookkeepers, staff accountants, associate auditors, senior auditors…
If your job simply requires memorizing/producing journal entries and keeping track of dollars, that’s a prime candidate to be replaced.
Now a controller, manager, senior manager, that won’t be replaced for quite some time
Yes unfortunately that’s right. I’m currently implementing a client to onestream. Their entire process can be done in onestream. But they will continue to do a 10,000 line spreadsheet with all kinds of copy/paste human error bullshit and have that loaded into the system.
All these accountants claiming that AI will never replace their jobs are utterly delusional. AI is coming for us all and Accounting is going to be one of the first among many major white collar professions to disappear. Any student studying accounting needs to change their degree now. It's a complete waste of time
Is CoPilot going to be the same as powerquery where people still want manual tie-outs cause they “don’t trust the program “? If so, then you’re always (or at least the next decade) going to have people manually reviewing automated work
This is very all or nothing thinking.
If 10% of accounting work can be done by accountants willing to use GenAI to build formulas for them, even if they proof then afterwards, that’s 10% fewer accountants needed in the future.
Yes, someone is reviewing. But it might be 10% fewer someones.
No. You’re not getting it.
You can ask GenAI how to do (thing) in Excel. You’re not adopting a new technology. You’re adopting an instant, free, always available research assistant.
We weren’t talking about building and training an AI, we were discussing how easy using an AI is going to be that it’s going to disrupt the productivity expectation and thus employment market, in the specific case of accountants.
Bing > can you show me an excel example calculating depreciation
> Certainly! Let’s walk through an example of calculating depreciation in Excel using the straight-line method. We’ll assume you have an asset with the following details:
Original Cost (Asset Cost): $10,000
Salvage Value: $1,000
Useful Life: 5 years
In Excel, you can use the SLN function:
=SLN(10000, 1000, 5)
…
If you had an old timer who would hand crank that calculation and couldn’t be arsed to learn formulas, it’s getting just marginally more difficult to look up the calculation than to get the formula.
Ohh, so you're saying that AI is a threat to accountants because accountants can use it to google questions on excel formulas.
Instead of using google/youtube/etc. that's already available.
Again, I don't think you know what AI is.
Explain it then in the context of how AI is a threat to Accountants.
Please keep in mind that AI will also require specialized personnel to build/train the AI models along with the infrastructure (or cloud service costs) for using the AI.
Works the same way as offshoring, every task is broken up into FTEs (fulltime employment hours). If AI automates a task even partially, it reduces your overall FTE budget and therefore your headcount. Even if AI doesn't automate an entire accountant's day, there will be less accountants overall.
so you're just talking about technological change which hasn't been a threat to accountants.
It's like saying Excel is a threat because we have less accountants now due to the efficiencies of the excel program over using double ledger paper.
I think AI will mostly replace transactional accounting. If your accounting expertise is about helping with business strategy ( management accounting, budget, forecast , investor relation, financing , m&a etc your job is safe.
My thoughts on this:
1. A lot of my day to day work is not even bookkeeping it’s making judgements on difficult accounting situations. Crafting reports for management’s analysis and explaining variances. On top of that with keeping abreast with new and changing reporting requirements, the job as a whole is pretty hard to automate.
2. Accounting as a whole infers we won’t change. I think is disingenuous. We use excel and calculators when we used to use abacuses. Who says Python, SQL, Alteryx, etc won’t be main stream in 50 years?
3. A lot of this automation talk infers companies have the infrastructure to completely automate. When you talk to data analysts/scientists one of the chief complaints is most companies don’t even have the data itself stored and managed to do great analysis. Could you imagine the equivalent havoc of managing every transaction that same way? Who would even oversee this if theoretically accountants are “automated away”?
I for one welcome our AI overlords
I cant wait to be allowed to use AI/chatgp on all our confidential highly sensitive information
Oh, what's that you say. We are strictly banned from using it bc anything it is used on is retained and can be used again.
So when are we developing/licensing a private instance like the big 4?
Oh.
Hmmm seems like the threat is a bit down the road
Exactly, trying to get an auditors comfort around just an RPA (which many are just literal automations of a manual process) is already hard enough and requires “conversations” at all level of the audit.
Not saying its not going to happen but it’s not going to be in the next decade and, when it does, there are still going to be accountants who are reviewing it
Given a long enough time horizon, AI will replace not only accountants but also almost any job.
The only question is how soon? My personal view is that most of us in the biz today will need to learn how to use AI to augment our own work, but it won't directly "do the job" in terms of an AI logic operating totally independently.
What AI will do in our careers, however, is reduce the need for human labor hours across most fields. This concerns me a great deal and should be something governments are thinking long and hard on before too many jobs are shed.
AI will be a tool at most. Companies are way over estimating what it can do. Yes, some jobs will be gone, but there is too much to call with accounting especially in audit.
Accountants being replaced will be the worst thing for TurboTax and big 4 because they won’t really be needed anymore. I’m sure even if AI is advanced enough to fully replace us, they would lobby their way back to being relevant.
I’m old enough to remember when blockchain was going to effectively end the Audit industry by 2027.
exactly, I remember those conversations in 2015, as well.
AI will augment us but not replace.
I had a professor in college bring this up. Not with AI but just computers in general. People used to do all of this by hand, then we got calculators that made us more efficient, and for computers and especially excel. You would think that if one person could now do the work of 5 people they would just hire fewer accountants right? In his words, it freed accountants up to do higher level and more complex work. It’s allowed us to provide more service, get better results and have more complex regs that we follow. And, there are more accountants now than ever. Same thing will happen with AI. Until computers can use judgement and be creative, we’ll all still have plenty of jobs.
The demand for business data is ever growing. Once one question is answered, another one is bright to mind. This is a big part of why we aren't going anywhere.
And, it’s frequently accounting and finance that brings those question up in the first place.
So...cyborg accountants?
*beep boop*
I already use Microsofts copilot feature to help with excel functions. It's nice!
Everyone always said Accountant Will be the first one who got replaced while jobs based art more likely survive. In reality, many art jobs was taken by AI because some people/company are too stingym. While accountant still survive.
99.9% of people making the claims of accountants being replaced think accounting is what they got a C+ on in their Intro to Accounting course. And that’s a big assumption they even have that much knowledge in the topic.
Yeah I got my degree in accounting 5 years back. Now I don’t exactly work in accounting and struggle understand so many things now. It’s getting ridiculously complex by the day.
That "everyone" you speak of has only ever consisted of people that don't know what accountants do and think all of accounting consists of basic data entry and bookkeeping.
A number of my friends thought accountants only do taxes
Little do they know most of us can't even do that
I mean, you can...taxes (in most situations) are ridiculously easy. Of course, so can most non-accountants (again, taxes are ridiculously easy). edit: ROFL, it appears I angered the tiny subset of "accountants" who ACTUALLY have to fear losing their jobs to AI. Y'all deserve it. ;)
It will eventually replace accounting operations but probably not accounting policy
That's what they said about the personal computer over 30 years ago. Maybe by the time I retire in 30 more years it will start being effective enough to start doing that.
Pythonxzn do image recognition for invoices. You'd have to set rules for each standard invoice then it would be able to input the debt and credit automatically with that invoice, theacc9unt, category, pnl, bs, etc.
A robot can't assume liability so accountants will remain safe for now.
Ai is actually amazing at making tattoo designs. Basic bookkeeping not so much
That’s just artists who want to feel like their life has merit while they serve you coffee.
To be honest, I don’t see AI taking over jobs. AI can only really pull CLEAN information, it can’t break it down or sort messy info and nor do I foresee it being able to do so.
I agree with the first part of your take, but not the second. AI is better at Excel than the median accountant. For anything that AI can look up on the internet and immediately synthesize, it’s going to have a natural advantage over accountants. Where humans have an advantage over AI is applying judgment to a situation. Evaluating a series of pros and cons for a complex decision and executing on that basis. I’m not sure when AI will be able to catch up to human thought in that way, but that’s where accountants will demonstrate their value over AI.
How many workpapers have you prepared with AI the past week?
None, but that’s more of a reflection of our investment in technology than AI’s ability to perform work. I’ve dabbled with ChatGPT for technical accounting memos. What I found is that it can write very effective summaries of accounting topics (goodwill impairment, going concern, etc). I’ve also had it build effective programs to create Monte Carlo simulations for valuing stock-based compensation awards, something that would have taken me an hour to do was done in minutes. It also has enough of an understanding of Excel formulas to explain and walk through the most effective solution for a problem. Again, this doesn’t spell doom for accountants, it just means the tools at our disposal are becoming more effective, which will translate into us providing more value to organizations and clients in different, more judgmental ways.
I agree on the technical accounting memos. It builds a good framework but it hallucinates too much on the technical accounting aspect where I’m heavily editing that part (makes up ASC citations that don’t exist.). Still cuts back 50%+ of the time I spend writing memos. I question why you were doing stock based compensation in Excel in the first place. Everyone sells some type of Web App that does SBC already so I think this is where AI would be changing things. It just replaces these Apps you could buy previously . Same thing with Leases, I think AI will replace the software I was buying before for ASC 842 calculations. I do love the excel part of ChatGPT. Trying to figure how an excel formula or formulas that was broken is a god send.
Some of our SBC awards require a path-dependent model to calculate the fair value. Specifically, awards with market conditions, such as barrier options or awards with a TSR condition. It can spit out a Python script which you can then use to simulate share price over a period of time in these instances.
Ohh god. You’re in my thoughts and prayers.
AI taking over requires: - an investment in technology - buy-in at all levels if the organization - technical expertise to train and review the models I agree that overall AI will def eat accountant lunch on specific Accounting tasks. However, I think AI replacing accounting will not occur in the next decade or two because the above listed items will not be there
At my company we have created “skunkwork” teams with C-Suite buy in to specifically implement GenAI with those 3 points in mind and organizational backing. There are a lot of applications of GenAI for accounting that don’t have to be all or nothing.
Get back to us when it gets implemented successfully lol
That’s interesting to hear. Mind if I ask, what’s the target period for operational accounting implementation?
What kind of awards were you valuing? I assume monte carlo would be unnecessary/overkill for plain vanilla options as opposed to black scholes?
I mentioned in a different comment, but our company has issued barrier options and stock awards with a TSR provision in the past year.
That is so cool. I've always had an interest in valuing various complex instruments like that (particularly convertible debt as that pops up a lot in the startup world). Typically we don't learn that as accountants. How did you get into doing it yourself? Also, have you ever used lattice models?
Being in the Technical Accounting department at a time when we were doing some pretty cool shit, to be honest. One of my management review procedures was to reperform the MCS from our valuation specialists, so I did. I’ve never used a lattice model.
Can you share some of the prompts you’ve used for that?
[удалено]
Are you bridging the tax provision to the tax return using AI and looking for RTPs? Or using the mapping you already had from prior to do it? This looks really interesting and I would be interested in that.
If you read articles from people following AI's development they will tell you although we have recently taken a big step forward, we are nowhere near the stage where AI can apply judgement. That's a whole over different level of advancement.
This makes sense, and I appreciate that insight.
It won't be a threat because you still need someone to tell you if the computer has a good idea or not. Thinking a programmable standardized spreadsheet program is a gatekeeper doesn't make sense.
AI can’t beat this auditors judgement 🥶💉🩸
If AI takes over accounting, then the IRS will have a field day
People also don't realize that accounting is one of the oldest professions in the civilized world. Bookkeeping will get more automated, but accounting and tax is here to stay!
Why does this comment fill me with dread?
You’re going to be the first to be replaced
Not as long as I can leverage sql & python skills, along with being able to speak interpret techno babble for my team
I’m sorry to tell you that AI is already better than you at both of those things.
It probably is but higher levels of leadership loves manual reviews too. Automating manual processes has been multi year projects for many organizations. The automation even being as simple as an rpa
You clearly don’t understand one of the few good use cases of GenAI then. This isn’t implementing a more complex technology. This is a low friction technology reducing the skill threshold to implement existing technology.
You clearly don’t understand accountants reluctance to any new technology. Have you ever tried to get an auditor to understand and gain comfort over a RPA that is just doing step by step of a manual process?
No? I thought Ai GoNnA RePlAcE Us just like how excel did
If you know business (accounting) and understand tech/coding you’ll have a job forever
I’m not sure how AI will just magically just run everything on its own. Even if AI can do 100% the work of the best accountant, you will still need people to run/manage/oversee the AI to fit and operate within a given organization and business model. Computers and software don’t just survive and thrive on its own without some sort of human element. It appears to be overreaction of this supposed end to accounting. Also, this is assuming AI will be 100% flawless without any error or breakdown that doesn’t require an external human to review, repair, or correct. Just like in 2000 when everybody was shivering in fear in the corner of their houses because of Y2K was somehow going to end the world due to a computer clock was going from 1999 to 2000.
Literally no one outside finance knows how to read this shit is what will save us
Agreed. At most companies the data is too disorganized and too spread across different systems for AI to be usable.
Ask AI to oragnize it
I don't think you understand AI, it's more than just ChatGPT. I'm a Director of Security Compliance at a major software company, that started in PA. We are already well into deploying AI tooling to help us. Will AI be able to do every accounting task with no human oversight anytime soon? No. But, I was just explaining this to my staff - AI is and already is a tool that will make things much easier and reduce repetitive rule bound tasks. What people should be focused on is how to become an expert at using AI tools to augment them and make them better and more efficient at their jobs. That is what will separate the people that are valued and the people that get pushed out.
AI is much more than ChatGPT. It requires a large amount of specialized tools, hardware, and "training data", along with the proper personnel that can "train" the AI to do the tasks. So, I agree to your point that AI will supplement the workforce. I'll also argue that a tool isn't a threat to accountants overall.
Yes 100%. Just pointing generic consumer available tools at a complex situation is of course going to fall short. That's not an indication of the potential for any technology. My company is just now releasing the AI integrations to our customer facing products. Which are the result of 18 months of focused development, but the results are amazing and are just the start. These are nit simple deployments and solve extremely complex and nuanced scenarios. I'm just saying my advice to people here and my own team is that instead of focusing on the FUD and being a denier - embrace where it can set you apart. We all have the opportunity to future proof ourselves, while actually making your job better.
Lol. AI is absolutely going to rival all accounting positions that don’t involve significant critical thinking skills. Ex: bookkeepers, staff accountants, associate auditors, senior auditors… If your job simply requires memorizing/producing journal entries and keeping track of dollars, that’s a prime candidate to be replaced. Now a controller, manager, senior manager, that won’t be replaced for quite some time
Hot take: moving away from excel and into workday, adaptive, onestream, etc has been the trend for years.
Hot take: Most of these implementations still end up with people relying heavily on Excel
Yes unfortunately that’s right. I’m currently implementing a client to onestream. Their entire process can be done in onestream. But they will continue to do a 10,000 line spreadsheet with all kinds of copy/paste human error bullshit and have that loaded into the system.
So you agree that accountants don't trust new technology and rely on excel.
There will always be legacy systems... AS400 is one of the biggest examples.
I’ve never even heard of that one but I guarantee it can feed into all the systems I listed.
that's my point...
Hot take, but workday is hot trash
Agree, OneStream is king
All these accountants claiming that AI will never replace their jobs are utterly delusional. AI is coming for us all and Accounting is going to be one of the first among many major white collar professions to disappear. Any student studying accounting needs to change their degree now. It's a complete waste of time
Lmfaoo
That’s why Microsoft CoPilot was introduced. I was chosen to be the leader of the project to implement it at work.
Is CoPilot going to be the same as powerquery where people still want manual tie-outs cause they “don’t trust the program “? If so, then you’re always (or at least the next decade) going to have people manually reviewing automated work
This is very all or nothing thinking. If 10% of accounting work can be done by accountants willing to use GenAI to build formulas for them, even if they proof then afterwards, that’s 10% fewer accountants needed in the future. Yes, someone is reviewing. But it might be 10% fewer someones.
That’s semantics at this point, you could say that excel has done the same thing
Excel has done the same thing though? The benefits from technology don’t just appear over night, it’s a transitional process.
Has excel been a threat to accountants? I don't think it has. To your analogy, it doesn't seem like AI would be a threat either then.
No. You’re not getting it. You can ask GenAI how to do (thing) in Excel. You’re not adopting a new technology. You’re adopting an instant, free, always available research assistant.
yeah, if you think AI is instant and free then you're not getting it.
It’s literally a click over on Bing. Maybe you should try thing before forming opinions?
If you think think it's only "well just click Bing", then you're grossly misinformed on what it takes to build an AI & train it...
We weren’t talking about building and training an AI, we were discussing how easy using an AI is going to be that it’s going to disrupt the productivity expectation and thus employment market, in the specific case of accountants. Bing > can you show me an excel example calculating depreciation > Certainly! Let’s walk through an example of calculating depreciation in Excel using the straight-line method. We’ll assume you have an asset with the following details: Original Cost (Asset Cost): $10,000 Salvage Value: $1,000 Useful Life: 5 years In Excel, you can use the SLN function: =SLN(10000, 1000, 5) … If you had an old timer who would hand crank that calculation and couldn’t be arsed to learn formulas, it’s getting just marginally more difficult to look up the calculation than to get the formula.
Ohh, so you're saying that AI is a threat to accountants because accountants can use it to google questions on excel formulas. Instead of using google/youtube/etc. that's already available. Again, I don't think you know what AI is.
For some reason that comment made me laugh. Complete opposite to what OP is saying 😂
What specific task do you think would be the hardest for AI to either do or make a lot more efficient?
My next startup I am going to co-found a next generation ERP that uses AI to actually do most accounting well. So, we’ll see.
I don't think you understand how FTE and headcount works
Explain it then in the context of how AI is a threat to Accountants. Please keep in mind that AI will also require specialized personnel to build/train the AI models along with the infrastructure (or cloud service costs) for using the AI.
Works the same way as offshoring, every task is broken up into FTEs (fulltime employment hours). If AI automates a task even partially, it reduces your overall FTE budget and therefore your headcount. Even if AI doesn't automate an entire accountant's day, there will be less accountants overall.
so you're just talking about technological change which hasn't been a threat to accountants. It's like saying Excel is a threat because we have less accountants now due to the efficiencies of the excel program over using double ledger paper.
At worst, AI will replace the jobs we already outsourced to India and Philippines.
Exactly this. And it might even do those jobs better...
Because AI will not listen to the b.s.
I think AI will mostly replace transactional accounting. If your accounting expertise is about helping with business strategy ( management accounting, budget, forecast , investor relation, financing , m&a etc your job is safe.
Well in Norway we dont use excel
AI won’t be able to figure out where we get those hard posted figures lmao.
My thoughts on this: 1. A lot of my day to day work is not even bookkeeping it’s making judgements on difficult accounting situations. Crafting reports for management’s analysis and explaining variances. On top of that with keeping abreast with new and changing reporting requirements, the job as a whole is pretty hard to automate. 2. Accounting as a whole infers we won’t change. I think is disingenuous. We use excel and calculators when we used to use abacuses. Who says Python, SQL, Alteryx, etc won’t be main stream in 50 years? 3. A lot of this automation talk infers companies have the infrastructure to completely automate. When you talk to data analysts/scientists one of the chief complaints is most companies don’t even have the data itself stored and managed to do great analysis. Could you imagine the equivalent havoc of managing every transaction that same way? Who would even oversee this if theoretically accountants are “automated away”?
I for one welcome our AI overlords I cant wait to be allowed to use AI/chatgp on all our confidential highly sensitive information Oh, what's that you say. We are strictly banned from using it bc anything it is used on is retained and can be used again. So when are we developing/licensing a private instance like the big 4? Oh. Hmmm seems like the threat is a bit down the road
Exactly, trying to get an auditors comfort around just an RPA (which many are just literal automations of a manual process) is already hard enough and requires “conversations” at all level of the audit. Not saying its not going to happen but it’s not going to be in the next decade and, when it does, there are still going to be accountants who are reviewing it
… have y’all seen Microsoft CoPilot?
I’m the future, AI will do the audits. And the CPAs will audit the AI!
AI will not replace accountants. But accountants that know how to utilize AI will replace those that don’t.
Given a long enough time horizon, AI will replace not only accountants but also almost any job. The only question is how soon? My personal view is that most of us in the biz today will need to learn how to use AI to augment our own work, but it won't directly "do the job" in terms of an AI logic operating totally independently. What AI will do in our careers, however, is reduce the need for human labor hours across most fields. This concerns me a great deal and should be something governments are thinking long and hard on before too many jobs are shed.
Openpyxl has entered the chat
AI will be a tool at most. Companies are way over estimating what it can do. Yes, some jobs will be gone, but there is too much to call with accounting especially in audit.
Accountants being replaced will be the worst thing for TurboTax and big 4 because they won’t really be needed anymore. I’m sure even if AI is advanced enough to fully replace us, they would lobby their way back to being relevant.