A modern accountant’s biggest fear is the possibility of being replaced by Artificial Intelligence (AI). Ironically, accountants turned to the source of their fear and asked ChatGPT to provide an argument for why increasing AI use will not threaten accountants’ jobs in the future. ChatGPT itself acknowledged that artificial intelligence has the capability to compute standardized tasks, but humans have skills that surpass the abilities of AI.¹
To have a successful career, accountants need to develop skills that will distinguish themselves from AI within their first five years of employment. The only way to remain relevant is to cultivate skills that AI does not possess. Now more than ever, accountants need to focus on critical thinking, informational literacy, and interpersonal abilities to effectively use AI and avoid falling behind the technology curve.
Why Worry About AI?
We live in a world where it is common for technology to grow and improve at a rapid pace, but the recent emergence of generative AI has rocked the world—sparking both controversy and applause. The International Business Machines Corporation (IBM) website describes AI as technology that allows computers to simulate human intelligence and perform tasks that would otherwise call for human intervention.²
The Business Research Company is a global firm that specializes in consulting and market research. They tracked how much the global accounting market has spent on AI each year in billions of dollars, and predicted how much the spending will increase in the coming years.³ Figure 1 shows their findings.
Notice how the amount spent on AI in 2022 was \$2.18 billion and the amount predicted to be spent on AI in 2028 is \$23.51 billion. The difference between the amount of money spent on AI in 2022 to the predicted amount for 2028 is around \$21 billion. AI usage in the accounting industry is going to grow rapidly in coming years.
Not only is money spent on AI predicted to increase over time, but the amount spent year to year is also expected to drastically increase. Figure 1 shows that the amount spent on AI from 2022 to 2023 increased by about \$1.06 billion, whereas the expected growth from 2027 to 2028 is \$7.82 billion. If current trends are any indication, a continuing exponential increase will occur in the amount of money spent on accounting AI globally. The predicted compound annual growth rate is 48%.
Increasing usage of AI in the global accounting market is astonishing. Clearly, accountants can expect AI to remain and likely become more prevalent in the future. Rather than avoiding AI, the time has come to learn how to keep up with its rapid growth. Developing skills that set accountants apart from AI will be increasingly needed as AI takes over the completion of routine accounting tasks.
Critical Thinking Skills
Critical thinking skills are crucial for emerging accountants. Teresa Gallagher, the finance AI Senior Manager at EY Ireland said, “While AI can process vast amounts of data at a rapid pace, it is not capable of the critical thinking and decision-making that human accountants are trained to do.”⁴ Critical thinking spans beyond basic problem-solving abilities.
Janet G. Hamilton, Raymond N. Johnson, and John L. Eckroth, CPAs and CFAs working for Portland State University, expounded on the concept of critical thinking by describing it as the ability to look at the world from different perspectives and decide what needs to be done in unique situations.⁵ Making real-world decisions requires empathy, imagination, and the ability to analyze the potential effects of alternative actions given the facts of each specific situation. AI cannot be programmed to make these types of complex, nuanced decisions.
Hamilton, Johnson, and Eckroth said, “Critical thinking ability may be enhanced with increased levels of expert (business) knowledge.”⁵ As young accountants enhance their understanding of complex topics and gain comfort in their problem-solving abilities, they take their work to the next level. AI will assume more control over routine tasks, which allows accountants to take on a more strategic role.
Information Literacy Skills
ChatGPT stated in its article that as AI becomes more widespread in accounting, the need for professionals who specialize in working with and understanding the technology will arise. Information produced by AI will not be useful if nobody has been trained to correctly interpret it. Accountants do not need to fear that AI will take over because someone will always be needed to apply the data that AI produces. Displaying competent informational literacy skills is crucial for accountants seeking to keep up with technology.
The American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) conducted a survey to determine if universities were teaching information literacy skills that students need in today’s workplace. Figure 2 shows the results of the survey.⁶
The survey includes results from 317 universities of varying sizes. Figure 2 shows the percentage of schools that teach important Information Technology (IT) topics. Notice how six out of the eight topics are not even covered by half of the surveyed schools. In fact, the most frequently taught topic is only taught in 64% of surveyed schools. According to the data, there are significant gaps between what is demanded of accountants in the workplace and what students are actually learning.
“While AI can process vast amounts of data at a rapid pace, it is not capable of the critical thinking and decision-making that human accountants are trained to do.”
If accountants are not learning the most valuable IT skills at school, they need to develop them on their own. Professionals need to be aware of technology trends and become trained in operating the latest industry technology. Paul Lin and Anand Jeyaraj, writers for *The CPA Journal*, advised that accountants leverage emerging AI and other technological tools to create competitive advantages for their companies.⁶ Organizations are looking for accountants who understand new technology and can use it to make the workplace more efficient.
Once accountants understand the best ways to use the technology, they need to know how to interpret the data. Shuning Li, director of audit and assurance at Deloitte, commented that more and more, the job of an accountant will be to analyze, challenge, and verify the information that AI produces.⁷ AI does not have the ability to replace professional specialists. It is important, especially in these early stages of generative AI, to have a deep understanding of its benefits and limitations. Accountants need to be able to adjust the algorithm of the technology and evaluate the truthfulness of the data being produced.
Interpersonal Skills
Accounting requires human interaction. One of the main points that ChatGPT made in its article about AI and accounting is that “the human element of this profession is crucial and cannot be replaced by a machine.” At the end of the day, accounting is a profession that requires client engagement.
Richard Lavina and Ralph Carnicer, accountants at Taxfyle, a real-time tax filing app trusted by over 200 CPA firms, wrote in the *Practice Tax Strategies* trade journal about the implications of AI. They said, “automation is the solution for firms that want to offer more dynamic services for their clients while reducing the likelihood of errors in collecting and retrieving information.”⁸ AI will save firms valuable time and allow accountants to focus more on client engagement. Accountants will be able to focus their energy on understanding and satisfying their client’s specific needs.
The key to positive client interactions is developing particular soft skills. AI does not have the ability to connect with another person the way a human can. This means accountants need to work on communication, teamwork, and conflict management skills. Clients have a variety of needs and each client will have a unique personality. Accountants need the ability to cater their services to each individual they work with.
Conclusion
AI does not need to be seen as a threat to accountants. Straight from the text box of the culprit itself, ChatGPT said, “Instead of viewing AI as a threat, accountants should see it as an opportunity to improve their work and to create new job opportunities.”¹ Chances will always be available in the business world for professionals who develop skills that set them apart from technology. Accountants who learn how to use new technology, analyze its results, and work to improve their interpersonal soft skills do not have to worry about AI taking over their jobs. Furthermore, accountants can set themselves apart by enhancing their perspectives and deepening their technical knowledge in order to cultivate advanced critical thinking skills.
Becoming a strategic and dynamic accountant will lead to a long, successful career working in this ever-evolving world of AI.
About the Author
Lara is a junior in the Information Systems program. When she isn’t studying, Lara enjoys trying her hand at all different types of sports from pickleball to ultimate frisbee, and finding ways to incorporate music into her life whether that be singing or playing the piano.
Notes
1. ChatGPT. “I’m Not a Threat to Accountants.” *Accounting Today*, March 2023.
2. “What Is Artificial Intelligence (AI)?” IBM. Accessed March 2, 2024. [https://www.ibm.com/topics/artificial-intelligence](https://www.ibm.com/topics/artificial-intelligence).
3. “Artificial Intelligence in Accounting Market Trends, Size and Forecast 2024-2033.” The Business Research Company, January 2024. [https://www.thebusinessresearchcompany.com/report/artificial-intelligence-in-accounting-global-market-report](https://www.thebusinessresearchcompany.com/report/artificial-intelligence-in-accounting-global-market-report).
4. Gallagher, Teresa. “What’s the Impact of AI on the Future of Accountancy.” *Accountancy Ireland*, April 2023.
5. Hamilton, Janet G, Raymond N Johnson, and John L Eckroth. *Critical Thinking Skills in the Accounting Curriculum*, n.d.
6. Lin, Paul, and Anand Jeyaraj. 2023. *A roadmap to technology agility for CPAs: Certified public accountant.* The CPA Journal 93, (9) (Sep): 59-63, [https://byu.idm.oclc.org/login/?url=https://www.proquest.com/scholarly-journals/roadmap-technology-agility-cpas/docview/2886395504/se-2](https://byu.idm.oclc.org/login/?url=https://www.proquest.com/scholarly-journals/roadmap-technology-agility-cpas/docview/2886395504/se-2)
7. Shuning, Li. “What’s the Impact of AI on the Future of Accountancy.” *Accountancy Ireland*, April 2023.
8. Lavina, R., & Carnicer, R. (2023). *ACCOUNTING PRACTICE: ADDRESSING THE LABOR SHORTAGE THROUGH AUTOMATION.* Practical Tax Strategies, 111(6), 20-24. Retrieved from [https://byu.idm.oclc.org/login/?url=https://www.proquest.com/trade-journals/accounting-practice-addressing-labor-shortage/docview/2898096888/se-2](https://byu.idm.oclc.org/login/?url=https://www.proquest.com/trade-journals/accounting-practice-addressing-labor-shortage/docview/2898096888/se-2)