ChatGPT and generative AI are evolving technological tools that have recently garnered attention in the field of accounting. However, their efficiency is still a matter of debate among tax professionals. Although these AI models can pass knowledge-based tests, they lack the experience and expertise that human accountants develop over time.
Furthermore, generative AI can present problems if it is unsupervised. It can produce imprecise data, which can lead to errors in analyses and potentially hazardous answers concerning tax laws and accounting practices.
While the CPA exam includes task-based simulations, they do not replicate the range of scenarios that can occur in real-world situations. Thus, it is essential to have human oversight to ensure accurate results.
Some individuals have questioned the human accountants’ relevance given the impressive results ChatGPT generated in response to a simulated CPA exam in a recent study. However, this feedback ignores that accountants’ role is more than just answering technical questions. It includes planning, giving advice, and building client relationships that are not simple to replicate with generative AI.
One of the concerns with generative AI is who monitors it. Without proper controls and oversight, the data it generates can be faulty, and the consequences can be severe. This understanding can only be gained through experience, not learned from textbooks. Researchers had to teach the machine how to learn, and it did not accomplish that feat independently.
Therefore, the future of accounting will likely involve a combination of human fact-checking and generative AI. By utilizing this approach, the industry can achieve both accuracy and convenience while keeping the human touch. Writing prompts are a hallmark skill of accounting professionals, and they can insert them into generative AI algorithms when analyzing data. The AI can promptly summarize topics, offer client email responses, make projections based on data, and suggest ways to improve results. However, this is only useful when fed with accurate data. The adage garbage in, garbage out applies here.
In addition, in a world where thousands of responses can be produced for the same question, the most accurate answer requires human verification.
The accounting industry is currently experiencing a shortage of professionals, with a retiring demographic and a limited number of new accounting majors. According to the U.S. Bureau of Labor Statistics, job openings for accountants and auditors are expected to increase by 6% from 2021 to 2031, creating about 136,400 openings annually.
Despite the hype about ChatGPT and generative AI, accountants are embracing the technology. With dedicating long hours to their client load, AI can help them become more efficient, but the financial future’s dependence on machines is still up for discussion.
