The impact of AI on the accounting and finance profession

Summary

In this discussion, Margaret Michaels, IMA's Brand Content and Storytelling Manager, interviews Mike DePrisco, IMA's President and CEO, about the impact of AI, particularly generative AI, on the accounting and finance profession. They explore how AI tools like ChatGPT will not replace but complement human professionals, emphasizing the need for skilled individuals to oversee data accuracy and ethical considerations. The conversation highlights the growing importance of technology skills, such as data analytics and machine learning, for finance professionals and the role of professional organizations like IMA in addressing talent shortages and supporting continuous learning in an evolving digital landscape.

Takeaways

• 🤖 The impact of AI on accounting and finance is significant, with tools like ChatGPT automating routine tasks but still requiring human oversight for ethical considerations and decision-making.
• 👩‍💼 Skilled human accountants will continue to be essential for integrating AI, interpreting data, and ensuring accuracy, free from bias and ethical concerns.
• 💼 There is a growing demand for accounting professionals who are knowledgeable not only in finance but also in technology, data science, and machine learning to keep up with evolving tools like AI.
• 📉 The talent pipeline crisis in accounting is exacerbated by declining undergraduate enrollment and high job turnover, with about 135,000 new accounting professionals needed annually in the U.S. by 2031.
• 🌐 Younger accounting professionals, especially those aged 18 to 38, want employers to adopt AI and other advanced technologies to make their jobs more strategic and less routine.
• 🏫 IMA is partnering with universities to embed AI and data analytics into accounting curriculums, ensuring students are prepared for real-world applications of these technologies.
• 🎓 The upcoming IMA Student Leadership Conference aims to inspire undergraduate students in accounting and finance by providing industry insights and leadership opportunities.
• 📊 Management accountants are well-positioned to leverage AI for ethical data management and decision-making, with IMA working on research and tools to help organizations integrate AI responsibly.
• 📑 IMA is developing a new ethics certificate focused on navigating AI and digital technologies, addressing ethical challenges in the digital age.
• 🌍 Professional associations like IMA are crucial for continuous learning, networking, and staying current with new technologies, helping accountants connect globally and adapt to industry changes.

Q & A

What is generative AI and how does it work?

Generative AI is a type of artificial intelligence that uses algorithms to generate original content such as text, images, software code, Excel formulas, and music from a simple text prompt.

What is Chat GPT and how is it related to generative AI?

Chat GPT is a widely known application of generative AI that has been trained on massive amounts of data and can produce human-quality content in seconds.

Does Mike DePrisco believe that AI tools like Chat GPT will replace human accounting and finance professionals?

No, Mike DePrisco believes that AI will require human professionals even more, as skilled humans are needed to leverage and integrate technology into their teams and organizations.

How can AI help in accounting and finance tasks according to the discussion?

AI can help automate tasks like financial analysis, expense management, and cash flow projections, but human professionals are still needed to facilitate the right data and interpret it.

What is the talent pipeline crisis in accounting, and how does it relate to technology?

The talent pipeline crisis refers to the challenge of attracting and retaining young talent in accounting and finance. Advanced technologies like AI can be part of the solution by automating routine tasks and allowing professionals to focus on more strategic and value-added activities.

What steps is IMA taking to address the talent pipeline challenge in accounting and finance?

IMA is working with accounting organizations to develop practical solutions, releasing reports on talent retention, and incorporating technology and data analysis skills into academic curriculums.

How does the adoption of AI technologies affect job satisfaction for accounting and finance professionals?

Accounting and finance workers, especially younger generations, prefer employers that adopt AI and automation technologies, as it allows them to focus on more exciting and strategic tasks.

What is IMA doing to help accounting and finance students learn to use AI technology in the workplace?

IMA collaborates with academic institutions to incorporate certificate programs like data analytics and visualization into the curriculum, and offers certification programs in areas like cybersecurity and ESG.

Can AI be creative, and how does the study from the Wall Street Journal support this?

A study featured in the Wall Street Journal showed that AI, specifically Chat GPT, outperformed humans in generating innovative ideas, suggesting that AI can be a powerful tool in the creative process.

What research is IMA planning to publish about the impact of AI on management accounting?

IMA plans to publish a research paper on the impact of AI on management accounting, focusing on ethical questions related to AI, and providing practical examples and case studies for leveraging AI in organizations.

How does Mike DePrisco view the future of management accountants in relation to AI technology?

Mike DePrisco is optimistic about the future of management accountants embracing AI technology, as they are integral business professionals who can shape organizations and influence communities.

Why is joining a professional organization like IMA beneficial for professionals looking to learn about AI?

Joining professional organizations provides a platform for continuous improvement, access to a network of peers for mentorship and problem-solving, and the opportunity to learn from different perspectives globally.