New accountants will need to readjust their career expectations.
The accounting software firm Karbon has released its “State of AI in Accounting Report in 2024,” which is worth a closer look for industry professionals curious (or worried) about artificial intelligence’s impact on the accounting sector.
The report rolls out at a time when accountants are under pressure in key areas like auditing, budgeting, and data forecasting – especially for newly minted accountants just out of school.
“Generally, the nature of a junior accountant’s role is likely to change more towards systems management—overseeing AI-powered software and databases—and relationship management, away from traditional reconciliations and ledgers work,” said Alex King, founder of Generation Money, a finance and advisory platform based in the UK, in a BBC interview this week.
King says that newer accountants will do less of the tedious work that has haunted new hires in recent years and spend more time on client-facing skills, primarily due to AI’s emergence.
“Generally, the nature of a junior accountant’s role is likely to change more towards systems management – overseeing AI-powered software and databases – and relationship management, and away from the traditional reconciliations and ledgers work,” he says.
Key Takeaways From the Karbon Study
The Karbon study underscores the changes and challenges already underway in the accounting realm as AI emerges.
“The results are in, and they’re clear,” the study noted. “Accountants worldwide expect AI to bring big change to the accounting industry. In fact, 71% believe that this change will be substantial.
“What’s even harder to ignore is that 82% of accountants are intrigued or excited by AI, yet only 25% are actively investing in AI training for their teams,” the report added.
The Karbon report also wonders if accounting industry leaders will “seize the opportunity” and “commit” to AI training.
That answer appears to be a “yes,” but expect big changes to the industry as that change shifts into higher speed. As Karbon noted, “AI won’t replace accountants. Accountants trained in AI will replace other accountants.”
Here are the key takeaways from the study, which canvassed 595 global accounting executives in early 2024.
- There’s no escaping AI: Most accounting professionals expect AI to transform the accounting industry substantially.
- Roles matter: Enthusiasm about AI depends significantly on a person’s role within a firm. “Owners, partners, and directors are more likely to embrace AI, whereas individual contributors are more skeptical,” the report noted.
- No one’s being replaced, but change is coming: Most accounting professionals are not worried that AI will replace them. “But they are concerned about what the bookkeeper’s role will look like in the future,” Karbon said.
- Humanity, ethics, and data security are big concerns: Accounting professionals are worried that AI will reduce humanity in their client interactions and are concerned about data protection and ethical dilemmas.
- The biggest hurdle: AI intent vs. training: More accountants are excited by AI than those actively investing in AI training for their teams. Commitment to AI education correlates with firm size. “As firm size increases, so does AI training investment until you get to firms with over 200 employees,” the study added.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.