Without a doubt, artificial intelligence (AI) dominated the tech trend headlines last year. Ever since OpenAI launched ChatGPT in November of 2022, the world has speculated about the potential opportunities, risks, challenges, and threats to many industries and professions as a result of this powerful technology. And with tax season just around the corner, maximizing efficiencies with technology is top of mind for many.
Despite some initial doom and gloom about the perceived threat of AI to accounting professionals, this narrative is losing ground. Accountants are eager to embrace AI, with 48% reporting they planned to invest in the technology over the next 12 months – showing early signs of AI’s potential in the industry. This was a refrain I heard consistently when talking to accountants, CPAs, and bookkeepers at this year’s QuickBooks Connect conference: people in the accounting space are buzzing about how this cutting-edge technology can enhance their work – not replace it. While some may still have reservations, I’m excited to see how accountants embrace AI as it continues to evolve.
But beyond anecdotes and survey data, how can accountants harness the power of AI and what does this advanced technology mean for them in the New Year, and beyond? Here are three implications I see on the horizon as AI becomes more intelligent and we all become more familiar with its capabilities and use cases.
Confidence Leads to Better Strategic Counsel
One of the most compelling promises of AI is the deep personalization it can offer, providing unique, relevant data trends which in turn leads to higher confidence in taking action based on those insights. But AI alone isn’t enough. The true secret to success comes from the rich customer data insights powered by AI combined with human expertise. Ultimately, this combination empowers people to make better, more informed decisions.
AI complements the work of accountants, particularly as it can help both firms and clients to be more strategic and action-orientated in prioritizing and completing tasks. But again, AI cannot replace an accountant. While AI may surface insights and recommended actions, it cannot build a relationship with a business owner or understand an entrepreneur’s ultimate vision, priorities, or larger mission the way a true accounting partner can. This is why I believe the combination of AI with an accounting professional will be transformative for many businesses in 2024, as it will help them to have more important strategic discussions informed by the data, but also the human understanding of big picture goals.
Streamlining Work with Practical Use Cases
Based on my conversations with accountants, the primary way they’re using AI is to streamline workflows and reduce administrative tasks and labor. Accountants and bookkeepers are able
to supercharge their work, driving efficiencies and saving time. The best thing about automating lower-level work? It opens up more time for strategic counsel and advisory – the type of conversations between an accountant and a client I reference above.
A recent survey found that 8 in 10 accountants (80%) said technology is freeing up time to take on more of an advisory role with their clients. So what kind of tasks can AI take on to give accountants the space for strategic work? From manual data entry, to auto categorization and reconciliation for transactions, report generation, answering basic questions, the development of email copy, and more, the use cases of AI and automation for accountants is enormous and will only continue to grow in 2024.
Reinvigorating the Talent Pipeline
Finally, one other significant implication that I see AI having on the accounting industry in the new year is its potential to reinvigorate the dwindling talent pipeline. Despite overall job satisfaction among accountants - with 82% saying they’d recommend the career - fewer and fewer young people are entering the industry. I wrote about this problem previously, and think AI can play a significant role in solving it.
Why? For the exact benefit I just mentioned: reducing the time spent on tedious, manual, and administrative work. When this work is streamlined, it gives young accountants the opportunity to work on more engaging and strategic work right away. The industry agrees - 85% of accountants believe technologies that make way for more engaging work can help attract young talent and breathe new life into the industry.
This past year we saw AI fundamentally change how we think about work, and it's just getting started. The tech will continue to complement accountants, allowing them to inspire even more strategic confidence, streamline low-level tasks, and reinvigorate the industry’s talent pipeline. As we look ahead in 2024, I expect we’ll see even more creative use cases for AI to help drive their success.
Jeremy Sulzmann
Jeremy Sulzmann
Jeremy Sulzmann is the vice president of the QuickBooks partners segment at Intuit, serving accountants and developers.