Redefining Accounting Roles in the AI Era: Lessons from Industry Leaders
The 3rd International Conference of the Journal of Information Systems, held on June 24-25, 2024, at Monash University, Indonesia, brought together thought leaders, academics, and practitioners to discuss the evolving landscape of the accounting profession in the era of artificial intelligence. The American Accounting Association and Certified Practising Accountant (CPA) Australia supported the event. It featured a keynote address by Professor Jac Birt from the University of Western Australia. Jac delivered a speech about "Redefining Roles: How Higher Education Can Prepare the Next Generation of Accountants." This keynote was followed by a panel discussion titled "Redefining the Role of Future Accountants in the AI World - Practitioners Perspectives." The panel included Mark Woodley, Asia Pacific Lead at Deloitte Indonesia, Agustinus Nicholas Tobing, Security Assurance Country Lead at Amazon Web Services Indonesia, and Voo Poh Jee, Partner, Audit Innovation at KPMG in Singapore, with Chu Mui Kim from the Singapore Institute of Technology moderating.
Adopting Advanced Technologies
In her keynote address, Jac emphasized the necessity for accountants to embrace advanced technologies. Jac highlighted that integrating AI-driven software, machine learning, drones, and adaptive intelligence products is crucial for accountants to perform their increasingly critical roles effectively. These technologies, she explained, enable auditors to access up-to-date accounting data at any time, shifting the focus from traditional processes to value-added activities where humans concentrate on analysis rather than repetitive tasks.
Jac also discussed the importance of data visualization strategies, underscoring that accountants must translate vast amounts of data into actionable insights for management and clients. She noted that this shift demands a new perception of accounting as a career, where job security and the future of work are prominent concerns. Addressing the challenges faced by Generation Z business graduates, Jac highlighted the need for continuous upskilling and technological fluency. Future accountants, she argued, must possess a solid understanding of various technologies, even at a basic level, and be able to collaborate effectively with teams and communicate to different stakeholders within the broader business context.
Practitioners’ Perspectives
The following panel discussion provided practical insights from industry leaders on how AI is reshaping the accounting profession. Mark Woodley from Deloitte Indonesia began by distinguishing between Generative AI and Predictive AI, emphasizing the need for accountants to build fluency in both areas. Mark stressed that technology is essential for compliance with regulations, regardless of profession. He provided examples of how generative AI can delve deeper into regulatory texts, enhancing understanding and application. However, he cautioned that AI cannot be held accountable for errors; the responsibility lies with the individuals operating the technology.
Voo Poh Jee from KPMG in Singapore offered an overview of the evolving role of AI in financial reporting. Drawing from KPMG’s recent survey ‘AI in financial reporting and audit: Navigating the new era’, she highlighted that more than 70% of companies surveyed are piloting or using AI in their financial reporting processes – a figure anticipated to rise to 99% within three years. Currently, AI constitutes 10% of IT budgets, with significant increases projected over the coming years. As businesses strive to integrate AI into their financial processes, respondents also expect auditors to evaluate AI usage, provide assurance, and attest to AI controls. Recognising the critical importance of trust in maximising AI’s value, Poh Jee elaborated on KPMG’s Trusted AI framework. This strategic approach facilitates the responsible and ethical deployment of AI strategies and solutions, thereby creating client value. The framework encompasses values such as fairness, explainability, accountability, security, privacy, safety, data integrity, and reliability, all of which collectively ensure a trustworthy and ethical AI lifecycle. Illustrating this concept, Poh Jee described the stages of AI integration in audit workflows, ranging from "co-piloting," where AI was used to support tasks, to "auto-piloting," where AI performs analysis and generates audit evidence responding to specific financial and non-financial risks.
Agustinus Nicholas Tobing from Amazon Web Services Indonesia added a pragmatic perspective, emphasizing domain knowledge’s indispensability for effectively leveraging technology. He argued that accountants, with their deep understanding of a company’s financial health, are uniquely positioned to add significant value through digital acumen and professional scepticism. Nico asserted that AI would not replace accountants but augment their capabilities, particularly in critical thinking, communication, and ethical decision-making. He highlighted the importance of these skills including the explainability and interpretability of the AI models to create business decisions to ensure that accountants can critically assess the ethical implications of AI applications in their work.
The panel discussion underscored a consensus: while AI and advanced technologies are reshaping the accounting profession, human expertise remains irreplaceable. Mui Kim highlighted that at her institution, the Singapore Institute of Technology, they embrace an applied learning approach, collaborating closely with industry partners on projects where students tackle real-world problem statements. This strategy equips students with crucial skills like adaptability and critical thinking. Integrating AI brings efficiency gains and new capabilities but also demands ongoing learning and adaptation. Accountants must adopt technological tools to enrich their roles, concentrating on strategic, analytical, and ethical dimensions that machines cannot replicate.
Preparing for the Future
The conference underscored the pivotal role of higher education and professional training in preparing the next generation of accountants. By fostering technological fluency and emphasizing the importance of transferable skills such as critical thinking, communication skills, and ethical considerations, educational institutions can equip future accountants to thrive in an AI-driven world. The insights shared by Jac and the panellists highlighted a shared vision of a collaborative future where technology and human expertise converge to elevate the accounting profession, ensuring it remains relevant and value-driven in an ever-evolving business landscape.