Saturday, October 19, 2024

AI technology is set to revolutionize the accounting industry, experts predict

Artificial intelligence (AI) is often feared as a threat to white collar jobs, but research conducted by Demos, ACCA, and Sage in the UK suggests that if used effectively, AI technologies could actually benefit the economy and increase employment opportunities.

The study, focused on the accountancy and bookkeeping sectors, highlighted the potential positive impact of AI, including large language models and generative AI (GenAI), on professional services. The research indicated that the widespread adoption of AI could contribute an additional £2 billion to the UK GDP, create 20,000 new jobs, and increase exports by £238 million.

To achieve these projections, it is crucial for accountancy firms and finance professionals to integrate AI into their operations. The research found that 61% of accountants and bookkeepers believe AI will bring more opportunities than risks, with 68% expressing confidence in utilizing AI in their businesses.

However, barriers such as the lack of AI adoption in certain firms and concerns about equitable growth among early adopters versus technologically lagging competitors need to be addressed. Additionally, issues related to trust, ethics, skills, and data quality must be managed effectively to maximize the benefits of AI in the industry.

Despite these challenges, there is a sense of optimism surrounding the potential of AI in the professional services sector. Analysts have noted a high level of interest in AI technologies, especially in areas like GenAI. As AI continues to evolve, there is a belief that it will play a significant role in driving economic growth and transforming the way business applications are selected and utilized.