By Lisa Laday, CPA

Recently, I had the privilege of attending the AMP Conference hosted by the University of South Florida in Tampa, Florida. It was a transformative experience presented by thought leaders in education and industry, giving me the opportunity to reflect on the current and long-term impact of Artificial Intelligence (AI) on the accounting industry. Here are my reflections and key takeaways from the event.

Will AI Replace My Services as a CPA?

As a CPA, one of the questions I often hear is, “Will AI replace your services?” My answer is simple: no. When used appropriately, AI can enhance my services and abilities as a service provider. However, as a CPA, I remain responsible for the application, verification, and client relationships.

Unsupervised automation can be dangerous. I would never rely on AI to perform tasks entirely on my behalf. Instead, I view it as a tool that assists me with predictive analysis, categorizing transactions, and quickly gathering comparative data. Like any other tool, AI requires a skilled handler to be used effectively.

The Rapid Advancement of AI

AI has taken incredible strides over the last few years, but it is still learning and growing. As with anything in development, it requires supervision. One could say that innovation has outpaced application, but we are seeing this change daily.

In time, as AI learns from past experiences and feedback, it will become more accurate in its decision outputs and expand its applications. However, this progress is dependent on the context and quality of the information provided in the execution request.

The Role of Human Decision-Making

In certain situations, two-thirds of the time, human decision-making is more effective than AI decision-making, particularly in areas where information is subjective, and human emotion impacts outcomes. However, AI excels in areas where data is highly specific, such as pattern recognition.

Enhancing Services with AI

As a professional service provider, I’m constantly seeking tools and expanding my training to add value for my small to medium business clients and entrepreneurs. Not incorporating AI in my services would be a disservice to my clients and my company.

AI significantly impacts several areas of accounting, such as:

• Comparative Industry Data Gathering: AI quickly compiles and compares industry data, enabling more meaningful comparative analysis.
• Predictive Financial Decision-Making: Provides insights leading to informed financial decision-making.
• Reducing Repetitive Tasks: Minimizes time spent on high-volume repetitive tasks.
• Tax Law Research: Accelerates data research on applicable tax laws and changing legislation.

Evaluating the Ever-Changing Impact of AI

It is recommended that consumers and entrepreneurs carefully evaluate the impact of AI on their work and lives. However, I must caution against the use of unsupervised AI applications. Think of AI as a tool in your hand, but like any tool, it requires a skilled handler.

To effectively harness AI’s potential, accountants must invest in additional training and education. By understanding the tool’s limitations and leveraging it to complement our expertise, we can provide exceptional value to our clients while keeping our industry at the forefront of technological advancement.

In conclusion, AI will not replace accountants, but those who adopt AI and integrate it into their services will be better positioned to thrive in the evolving financial landscape. Let’s embrace this transformative tool and use it to elevate our profession.