Artificial intelligence tools like ChatGPT are transforming the accounting industry, offering enhanced capabilities for tasks such as summarizing financial data and generating automated responses. However, current usage can be viewed as augmented intelligence, with human input still crucial for effective functioning. The upcoming integration of AI into accounting software promises increased efficiency and the automation of routine tasks.
Accounting Automation Evolution: Augmented or Artificial Intelligence
Artificial intelligence (AI) is making significant strides in the accounting industry, with tools like OpenAI’s ChatGPT capturing attention. ChatGPT, a natural language application that provides human-like responses, has witnessed rapid adoption, gaining over one million users within its first week of release. It is being utilized by bloggers, journalists, and students for research and writing tasks. However, its advanced capabilities have led to its ban in some educational institutions.
In accounting, AI tools, including chatbots, offer potential benefits such as developing marketing content, summarizing financial data, and providing customer support by generating automated responses. These AI applications use sophisticated algorithms and vast datasets to function but depend heavily on the quality of their training data.
Current AI usage in accounting can be better described as “augmented intelligence” rather than true AI. Most tools require human input and expertise to function effectively. Technologies like application programming interfaces (APIs), machine learning (ML), and robotic processing automation (RPA) are already being used to some extent in accounting to automate processes.
To integrate AI broadly into accounting, it must be user-friendly and reliable. Microsoft, a significant investor in ChatGPT, is expected to incorporate AI into its Office applications, with further integration anticipated from major accounting vendors. This development promises to automate routine tasks, allowing accountants to focus on areas requiring unique expertise.
Roman H. Kepczyk, CPA.CITP, CGMA, is a director at Right Networks, advising accounting firms on automation and practice transformation. He highlights the transformative potential of AI in making accounting practices more efficient by automating repetitive tasks and enabling accountants to deliver higher-value services.
