Artificial Intelligence
AI a development that 'cannot be ignored'
AI's rapid development must be carefully embraced, according to speakers and attendees at the Digital Accountancy Show
Words Annie Makoff
There are two sides to AI that accountants have to pay close attention to: the boon it offers in terms of processes and efficiencies; and the potential threat it represents in terms of data security and fraud. Either way, it’s here to stay and is going to change an array of aspects of the way accountants work.
That was the message at the Digital Accountancy Show, an immersive technology conference held this year in Evolution London, Battersea Park, which drew thousands of accountants, bookkeepers and finance professionals. AT caught up with speakers and attendees to understand how the profession is responding to the change AI is fuelling.
Disregard AI at your peril
There has been a lot of debate and media frenzy about AI ‘stealing’ jobs and decimating the accountancy industry, especially since the launch of ChatGPT and other AI chatbots. Yet for Jason Staats, entrepreneur and founder of accounting community Realize, it’s not necessarily the technology that will replace accountants, but those with the most up-to-date skillsets.
“Accountants leveraging AI will replace accountants who are not leveraging AI,” he says. It’s about accountants ‘figuring out’ how utilise AI effectively to future-proof their careers.
Steve Reynard, head of partnerships at accountancy recruitment agency UK Employment Hero holds similar views. “Accountants won’t be replaced by AI but they’ll be replaced by someone who understands how to use AI,” he says. “From the first industrial revolution to the second, it took 105 years. Yet from the fourth industrial revolution (the internet) to the fifth (AI), it took just 24 years. AI is only going to accelerate further, so it’s important to get a handle on AI now before you get left behind.”
SPEED OF AI DEVELOPMENT
40%
of jobs will be automated by 2033, according to Oxford University.
One in six
UK organisations have now embraced at least one AI technology according to official government statistics.
11 hours
The latest Google Gemini (1.5 pro) can process one hour of video or 11 hours of audio in a single instance.
ChatGPT is the fastest-growing app of all time. When it was first launched, it took just two months to reach 100 million users.
Jason Staats, entrepreneur and founder, Realize
AI tech is an ‘enabler’
The top three uses of AI within accountancy firms are automated data entry and reconciliation, financial forecasting and fraud detection.
AI is not so good at advisory. As AI and smart technology continues to develop, the accountant’s role will inevitably move towards value-add services such as business strategy, advisory and nurturing client relationships.
“Tech is an enabler. It’s not to replace jobs but instead removes mundane things that nobody enjoys doing,” says Nicola Savill, director of business outsourcing services, Moore Kingston Smith. “Language models can help cut down your email inbox by a third by summarising key elements of emails and it can greatly improve risk analytics.”
AI is the ‘driving force’ behind innovation and this can help free up accountants to focus on building better client relationships. “Connecting with clients is absolutely critical,” she adds. “In the digital world these skills are lacking, that’s the reality. So any technology which helps accountants reconnect with clients is essential.”
Work with your vendors
Partnering with the right providers who are fully leveraging AI was one of the key recommendations across the show.
“It’s never been more important than now to ensure you as accountants are partnered with the right people who will lean into AI,” Staats insists.
Matt Brodie, partner development manager, Intuit, agrees. “We are living in the most challenging economic times most of us have ever faced. AI tech like InTuit can help surface greater insights for customers.”
So what should accountants be asking their providers?
Steve Reynard suggests:
- What are you developing at the moment?
- What are you doing to fully embrace AI tech?
- What technology are you currently bringing in to create the efficiencies I need?
Beware of deepfakes
There’s a darker side to AI. Criminals are making use of AI tech to bypass anti-money laundering measures – and it’s on the rise.
Deepfakes, synthetic media which have been digitally altered to mimic someone’s identity, are a worrying new trend. They are sometimes used to spread disinformation online and trick people into parting with huge sums of money.
For accountants using online video platforms like Zoom to onboard clients they’ve never met before – this is a huge concern. Deepfakes are very convincing and it’s easy to forge documents, especially if accountants see AML compliance as a ‘check box exercise’ which says Danielle Fisher, AML product manager, Sage, is a ‘common sentiment’.
THE NUMBERS
32%
increase in deepfakes from 2022-2023.
500%
increase in digitally forged IDs between 2022-2023.
$25m
The amount a Hong Kong firm lost after deepfake technology was used to impersonate senior executives and persuade staff to transfer over the money.
How can accountants guard against fraud risk?
Danielle recommends implementing a strong system before taking on a client:
"Experts predict that we’re going to see an increase in fraudsters making use of the latest AI tech to forge documents and create deepfake images at scale. It poses a huge reputational risk to businesses."
Danielle Fisher, AML Product Manager, Sage
“Work closely with your team,” Danielle recommends. “If one team are responsible for onboarding and another are responsible for client relationships, make sure they have all the facts.”
Meeting the client face-to-face initially is important too. But if this isn’t possible, use biometric checks. “Biometric checks are adopted by HMRC and UK Passport Control and are the most resilient to deepfake attacks.”
