The accounting profession is undergoing significant transformation as new technologies enter the field. Imagine having a virtual assistant that can handle repetitive, time-consuming tasks efficiently and accurately. This is precisely what ChatGPT can provide accountants — a helping hand that would enable them to work more efficiently and productively.

The ChatGPT chatbot was launched approximately 2 months ago, yet it has already reached 1 million users in only 5 days. Comparatively, Facebook took 10 months to achieve the same number of users, while iPhone took 74 days. ChatGPT’s unexpected strength and the newly discovered potential of large language models posed an immediate threat to Google’s position as the world’s leading search engine.

The emergence of artificial intelligence

There is a misconception that the accounting industry is monotonous. This stereotype may be influenced by the perception that accountants are purely focused on numbers and data and that there is no work-life balance.
Machine learning and robotic process automation have made it easier for accountants to automate routine tasks such as data entry and financial reporting. Therefore, accountants will be able to devote more time to activities that require analytical, strategic, and creative thinking to make informed financial decisions for companies.

On the other hand, accountants work with large amounts of numerically structured data. They can use deep learning – one of the machine learning methods, to identify complex patterns and relationships within large datasets. Using statistical models, financial and non-financial data will be trained to predict financial performance. Predictive analytics can help identify patterns in data, make forecasts, and assist in decision-making.

Data accuracy is another potential advantage to professionals. Accountants will no longer need to manually check each cell and figure on a spreadsheet which is prone to human error. With interactive charts and visualisations, data can now be processed quickly and accurately. Some professionals already use Microsoft Excel which provides an integrated feature of PowerQuery by connecting to databases for live data feeds. Business intelligence tools like PowerBI and Tableau will help create stunning data storytelling experiences for accountants.

Bridging the skills gap

Is artificial intelligence going to replace accountants? It is a common question I get from colleagues and peers. To put it simply, accountants will be displaced, not replaced. Accounting will shift from being perceived as mere bookkeeping to what it really is – problem-solving, business improvement and communicating impact which requires strong analytical and critical thinking. Artificial intelligence, robotics, and machine learning specialists will replace the industry’s declining workforce of accounting clerks.

How about the level of preparedness of current accounting education for the digital world? Researchers have found that most local accountants are not adequately trained or exposed to the digital economy. Studies in the US reflect the same trends within college and university accounting programs, pointing out “significant gaps between what the practice requires and what students are being taught in accounting programs”.

I am pleased to learn that some major accounting firms are investing in their existing staff to learn to code rather than hiring a team of data scientists. It will be difficult for data scientists to analyse data if they do not understand the client’s business domain. Making meaningful conclusions requires a thorough understanding of the client and the industry in which it operates.

ChatGPT in business schools

The Wharton School of the University of Pennsylvania announced that ChatGPT has passed one of its core MBA courses – operations management. Some academicians also raised concerns that students may use it to cheat in their essays and exams. The question remains: What is the value of a rigorous 4-year accounting degree in Malaysia?

A typical business school curriculum involves case studies, presentations, and networking activities. In other words, these are the “Business School Experiences” that artificial intelligence cannot replicate, including ChatGPT.

I believe that artificial intelligence can enhance the study process. Think of it as interacting with a study group member (like any other classmate) — learning through “study group discussions” instead of memorisation. That’s the most effective way for business school students to benefit.

Final Thought

There is no doubt that ChatGPT will significantly impact the accounting industry. ChatGPT’s ability to automate routine tasks has the potential to revolutionise the way accountants conduct their work.

Managing the risks associated with any new technology is essential in achieving the intended objectives. Artificial intelligence, including ChatGPT, cannot be guaranteed to be error-free. The generated data may also be inaccurate and unreliable, leading to mistakes and bad decisions. Ultimately, it will all come down to how the accounting industry embraces and leverages ChatGPT to drive growth and innovation.

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This article is contributed by Mazars’ Director & Young MICPA (The Malaysian Institute of Certified Public Accountants) Task Force member Roger Loh Kit Seng. The views expressed here are the writer’s own. You can check out some of his open-source codes at https://github.com/rogerloh-acc.

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