Will CPAs Lose Their Jobs to AI?

Analytical AI vs Generative AI

Some CPAs and other professional advisers are using artificial intelligence (AI) to improve their analysis work. They use AI for activities such as the following:

• classification of transactions,

• identification of indicators of fraud, and

• modeling scenarios of risk and opportunities.

Applications of AI for analysis are sometimes called “analytical AI.” In contrast, recent advancements in AI used to generate output are often called “generative AI.” Examples of generative AI include ChatGPT, Stable Diffusion, and Dall·E.

Because analytical AI has been developed to improve services for existing customers through traditional channels, advisers have had the opportunity to adopt analytical AI to improve their productivity.

Startups may attempt to train generative AI models on accounting standards and authoritative guidance to provide advisery AI applications. And the combination of generative AI and analytical AI may create innovative service offerings.

CPAs and advisers may point out that these applications would not be as sophisticated as an experienced professional, and in many cases they would be correct…today.

However, some of these innovative offerings may be directed through new channels to underserved customers and in smaller markets where they have the opportunity to improve unnoticed by the majority of advisers.

Innovative AI May Improve Quickly

The most sophisticated and well-capitalized clients would probably not find innovative startup applications to be sufficient for their complex needs in the immediate future.

However, over time, innovative AI applications may improve in quality quickly, catching up to business requirements of larger companies and in larger markets where CPAs and advisers offer services.

Therefore, rapid improvements in technology in small markets could yield surprising disruptions to the services provided by CPAs and advisers.

As generative AI continues to advance and show value, professionals should be mindful of areas where rapid improvements in applications could eliminate tasks, roles, or jobs.

Adapting to Automation

Some roles of CPAs and advisers are already at risk.

Firstly, professionals performing repetitive tasks in their data entry, financial analysis, and reporting are already exposed to disruption from applications that can integrate systems and automate these types of processes.

AI-powered software will continue to expand the capabilities of these systems to incorporate more data types, which could make larger portions of this work redundant.

Secondly, advancements in fintech and online accounting tools already replace some manual activities performed by CPAs.

These platforms are designed to be user-friendly and require minimal input from the user, meaning that sometimes operations teams can bypass or reduce their need for accounting and risk professionals.

In many of these cases, advisers still have time to adopt these technologies and incorporate them into their existing work, but advisers should act quickly.

Adapting to Analytical AI

CPAs and advisers have more time adapt to changes brought on by analytical AI.

They should be proactive in upskilling and reskilling their analyses now. Learning fundamental concepts about AI and identifying high-value opportunities for using AI-powered technologies can help CPAs to adapt to the latest changes in their industries.

Additionally, CPAs should continue specializing in areas where they will have the opportunity to leverage the latest techniques and technologies, such as complex tax planning, technical accounting, risk management, cybersecurity, or forensic accounting.

These areas require a high level of expertise and human judgment, and advancements in these areas create future opportunities to add value.

Preparing for Generative AI

For generative AI, the disruption may come from service offerings outside of today’s most valuable markets. CPAs and advisers are less likely to see those changes coming unless they are actively looking for indicators.

CPAs should watch for signs of forthcoming disruption. Disruption will come from markets that initially are too small for advisers to pay attention to. The key ingredient for disruption is that the quality of the solution improves quickly.

Many advisers may not notice the solution until it has improved enough for large markets—until it threatens their work directly.

CPAs should attempt to identify when innovative offerings appear to be improving quickly in underserved markets. They can read trade journals and attend conferences to monitor trends in the marketplace.

Pay attention to rapidly improving service offerings that offer high levels of convenience for new markets, for new customers, and through new channels.

Advisers should cultivate a growth mindset and a curiosity for learning by staying updated on the latest trends, developments, and new products in their field and beyond.

Some advisers may even explore riding the wave of disruption by joining disruptive teams and personally contributing to innovations, choosing to surf the wave of disruption rather than being caught underneath it.