For decades Artificial Intelligence (AI) was little more than a sci-fi plot point. Something that was likely to arise in the distant future with potentially distressing consequences. Well, for better or worse, that future is here. To be more precise it arrived on November 30, 2022. That is the day OpenAI released ChatGPT.

Since that day, a sense of uncertainty has infiltrated a variety of industries, including the accounting industry, with even experienced accountants suddenly feeling unsure about the future. But are the concerns of accounting professionals warranted? Read on to learn our take on how ChatGPT (and other emerging AI programmes) will impact the accounting industry.

First Things First: What is ChatGPT?

ChatGPT is a Large Language Model (LLM) tool that uses AI to, among other things, produce conversational-style responses to human queries. It is essentially the AI Chat Bot, (so ubiquitous in the customer service space today), on steroids. The programme is able to answer questions, troubleshoot and compose computer code, compose emails and write entire essays.

But that's not all. Accountants have been keeping an eye on the programme because of its ability to perform complex calculations, conduct statistical analysis and uncover patterns within mountains of data, all at the speed of light.

Could ChatGPT or Its Successors Replace Accountants?

It seems inevitable that there will be some disruption in the accounting industry due to the introduction of AI programmes like ChatGPT. At the same time programmes like ChatGPT will provide value to accounting firms by:

• Helping accountants more easily identify financial trends.
• Removing the drudgery of creating and tracking invoices from the accounting department.
• Making the process of auditing far more efficient and accurate.
• Performing rote tasks such as data entry so accountants are free to focus on ‘big picture’ tasks.

AI Limitations

• Programmes like ChatGPT require high-quality human input if they are to produce high-quality output. Someone with knowledge of accounting has to provide that high-quality input.
• ChatGPT is known to sometimes produce responses that look good but are actually incorrect. For that reason, human supervision is still crucial.
• ChatGPT often struggles with context and because of this sometimes produces misleading, irrelevant or nonsensical responses.
• ChatGPT has not been trained to identify and respond to ethical considerations. Nor is it able to provide responses or guidance informed by the spirit of the law, which incorporates the intent of the lawmakers.

Not Really the New Kid on the Block

While many felt blindsided by the release of ChatGPT the fact is the shift to AI in accounting has been underway for several years. Even before ChatGPT was released in 2022 Ernst & Young had been using AI to analyse contracts and assist with auditing. Deloitte had been using AI to review documents and extract relevant information. PwC had designed their own AI natural language processing system to prepare reports and analyse documents. And KPMG had developed AI tools to assist with data analytics.

The bottom line is that well before ChatGPT was unleashed, industry stalwarts had already spent years investing in AI and machine learning to help them become more efficient and responsive. Importantly, the world had not ended as a result.

No Turning Back

The rise of ChatGPT and other similar programmes may cause disruption in the accounting industry. But there is also no doubt that skilled accountants who can recognise and harness the capabilities of these platforms to further their client’s interests will thrive in this new environment.

If you are looking for experts in Accounting recruitment, get in touch with JMF Associates at team@jmfassociates.co.uk or you can call us on +44 (0)20 8663 6699.