Understandably there is concern about the possibility that increased use of artificial intelligence (AI) will lead to job losses among accounting and audit professionals, but it doesn’t necessarily mean that those jobs will go away.
Mike Baccala, PwC’s U.S. assurance innovation leader co-author of a recent PwC report that predicts the effects that AI will have on the business environment, predicts that AI may change accounting and auditing jobs, but they will not go away.
He said PwC already is working with AI in a few capacities in client engagements. The firm is using an AI platform to help non-audit clients extract data from their lease agreements as they implement the new FASB lease accounting standard. Without AI, this extraction would take eight to 10 hours to perform for each lease contract, but with AI, that time is down to three or four hours per contract, and it’s continuing to decline.
In addition, PwC financial statement auditors are using AI to draw data out of client bank statements to help with substantive testing that’s required for auditing of cash. In both cases, Baccala said, the AI hasn’t resulted in people being taken off the projects; instead, the people are performing different duties.
The AI is pushing people toward performing work that is more interesting, Baccala said. For a long time, one of the more tedious tasks for accountants and auditors has been the process of taking data and organizing them before they are analyzed and audited. Those data could take the shape of a bunch of receipts and invoices in a shoebox, or the form of various ledgers and spreadsheets.
AI can replace humans at the dull task of extracting, organizing, and structuring the data. But those same accountants and auditors working with AI perform different tasks. First, they teach the AI what data to look for and how to organize them. Then they investigate anomalies. And because the AI is working with all data rather than just a sampling (in the case of audits), there may be more anomalies to investigate.
Meanwhile, the AI-enabled auditing of all data rather than just samples is providing more value to clients.
“We haven’t actually removed anybody from the practice [because of AI],” Baccala said. “We’ve freed them to do other things, and we’re helping more clients with the process.”
Baccala acknowledged, though, that a significant amount of “reskilling” needs to take place to help accountants and auditors work effectively with AI. He said traditional CPA skills such as skepticism, judgment, analysis, and understanding technical accounting will become even more important because those are qualities that AI is unlikely to ever duplicate and, in a data-governed world, they are vital.
New skills that help accountants and auditors succeed with AI include:
Fundamental data skills. The most successful accountants and auditors will possess core data skills that allow them to succeed as they serve clients with different systems and policies. These include data strategy and data processing skills, as well as proficiency in statistics, probability, and deductive reasoning.
Storytelling ability. PwC is focused on training its people in the art of using the huge amounts data that AI can provide to effectively convey meaning and a message through storytelling.
Ability to automate. Accountants and auditors are likely to encounter processes used by clients that could be improved through automation. Whether those are production processes or finance processes, the ability to implement automation to improve efficiency and reduce costs will be a differentiator for CPAs.
