The likes of luminaries such as PwC and Oxford University have predicted that within 20 years, 97.5% of accountant clerk and bookkeeper jobs could be automated. However, those statements were made almost 10 years ago, and it would seem that those early fears of AI making great swathes of accountancy professionals redundant, don’t represent the reality of the 2020’s. The question is, does AI still have the potential to replace professionals working in the field of accountancy, or is the very concept, fantasy?
According to the US Bureau of Labour Statistics (2018), there is nothing to fear when it comes to AI replacing accounting jobs. Indeed, the USBLS, actually projected a 7% increase in demand for accountancy jobs between 2020 and 2030, despite the presence of AI, suggesting that the additional time gained from not completing the mundane tasks allows accountants to become more proficient in their advisory and analytical duties. This is quite a contrast from the claims made by PwC and Oxford University. Let’s break down the pros and cons of AI in relation to the accounting profession.
What is AI useful for in accounting?
AI can automate tasks such as data entry, report generation, payroll, bank reconciliation and contract interpretation. These tasks are typically repetitive and if you are working for a firm with a substantial workload, it’s a relief to know you can rely on tools such as AI to manage repetitive tasks quickly and with accuracy while you dedicate your time to other aspects of the business.
What are some potential issues with AI?
It goes without saying that AI can work better than humans in many ways, but don’t give up on the humans just yet - AI does of course have shortcomings:
Is AI really comparable with humans?
Although AI will be able to complete some accounting tasks more efficiently and without human error, it does not mean accountants are going to be made redundant. There are still human elements of accounting that could not possibly be achieved by a computer. Let’s have a look at them:
Conclusion
The bottom line is that AI can provide immense value to organisations in completing repetitive tasks, that will ultimately free up time for accounting professionals and add value for clients. Indeed, Gartner has suggested that AI will actually create more jobs than replace them! Clearly the human element is still fundamentally vital to the successful operation of an accountancy business. Contrary to the initial view of PwC and Oxford University, it seems the common understanding now is that AI may transform accounting, but it’s our view that for the foreseeable future it’s unlikely to replace accountancy professionals.
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